Report suggests Fitness and Lifestyle Group buys CMG Asia for $200 million
The Fitness and Lifestyle Group is reportedly to pay $200 million to acquire the Vietnam-based CMG Asia gym group.
As reported today in the Australian Financial Review, the investment is apparently part of plans by Fitness and Lifestyle Group owner Quadrant Private Equity to expand the business - particularly in Asia - as it prepares the overall company for sale.
The AFR reports that “the Asian acquisitions are sure to bring a strong Asian growth story to the auction, which would likely increase the field of potential buyers and perhaps add some sizzle to its predominantly Australian gyms portfolio.”
Based in Ho Chi Minh City (formerly Saigon) CMG (California Management Group) Asia operates in four industry sectors: fitness and health, medical and beauty, media entertainment and early childhood development.
It is also the south east Asian master franchisor for UFC Gyms.
AFR sources said CMG Asia facilities have about 100,000 members generating about $20 million in annual earnings.
The AFR suggested that with over $600 million revenue, if sold, the media-shy Fitness and Lifestyle Group would be worth up to $2 billion.
Image shows CMG Asia's California Fitness brand.
The Fitness and Lifestyle Group was profiled in the latest issue of Australasian Leisure Management.
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