World Gym Taiwan announces acquisition of World Gym International

World Gym Taiwan has announced that it has acquired its parent company, the USA-based World Gym International (WGI).

According to a statement on its website, World Gym Taiwan - owned by World Fitness Services, Ltd which owns and operates World Gym facilities in Taiwan - confirmed its acquisition of WGI at a cost of US$9 million, valued at seven times earnings.

The acquisition grants World Fitness Services (WFS) the global operating rights of the World Gym brand, as well as immediate access to franchise royalties from its 271 international locations.

The move will see WFS Chairman John Caraccio serve as interim Chief Executive of World Gym International, while Michael Sanciprian, former Chief Executive of WFS, shall serve as Executive Director.

Advising of the acquisition, Caraccio said the acquisition is expected to boost revenue and net profit, with projected annual franchise fees ranging from US$3.5 to US$4 million and a 50% operating profit margin.

He explained "as long-time partners and passionate advocates for the World Gym brand, we are thrilled to lead this next phase of growth.

"We are committed to upholding the values that have made World Gym an iconic name in fitness."

Currently, WGI has franchise partners in 10 countries, including Australia, the USA, Canada, Mexico, and Brazil. Taiwan has 130 branches and 450,000 members, with 15 to 20 new branches opening annually.

Caraccio said the acquisition is likely to boost investor confidence in World Gym, increasing its market value. Looking ahead, the company aims to operate 500 direct-run gyms, including 250 in Taiwan.

Image: World Gym International’s John Caraccio and Michael Sanciprian stand in front of sign announcing this week’s acquisition of World Gym International. Credit: World Gym International.