The Equinox-owned Blink Fitness has signed an asset purchase agreement with PureGym, one of Europe’s top fitness operators
Equinox-owned Blink Fitness has reached an agreement with PureGym subsidiary Pinnacle US Holdings to acquire the affordable gym brand’s corporate operations and a substantial portion of its locations, primarily in New York and New Jersey, for a base purchase price of $105 million in cash.
The deal is subject to higher offers and court approval, although PureGym has been granted ‘stalking horse’ status ahead of an Oct. 28 auction.
Just last month, Blink Fitness announced it voluntarily filed for bankruptcy and was exploring a sale. The low-cost gym operator had also secured a $21 million commitment from existing lenders to support its business during the process. One noteworthy point in light of the bankruptcy filing was the gym operator’s revelation that revenue had increased by nearly 40% over the past two years.
Blink Fitness president and CEO Guy Harkless noted that the agreement marks an important step in the gym brand’s sale process.
“For many years, Blink has provided our members with an inclusive, community-focused gym destination,” Harkless said. “As we have worked this year to reinvigorate our most popular locations and elevate our member experience, we are encouraged by PureGym’s interest in the Blink business model and strategy and their belief in Blink’s mission to democratize fitness for all.”
Harkless, who joined Blink Fitness at the end of 2023, added that Blink is confident in its foundation as an affordable fitness brand and will provide a “strong base” for new owners to build upon – a sentiment shared by PureGym CEO Humphrey Cobbold.
What’s Next for Blink Fitness
Plans are also in the works for PureGym to invest in New York and New Jersey-area Blink gyms with facility upgrades.
“We have long admired Blink for the premium and affordable fitness experience that the team has delivered and their commitment to helping members improve their life through fitness,” Cobbold said. “This agreement to be the stalking horse bidder in the court-supervised sale process lays the foundation for PureGym to successfully expand its footprint in the U.S., supporting our purpose-driven mission to inspire a healthier world at an accessible price.”
Blink Fitness has over 100 locations throughout the U.S. The low-cost operator’s gyms in Texas, Illinois, and California are not included in PureGym’s agreement, although Blink noted that it is actively exploring the sale of these locations.
As for Blink gym members in New York and New Jersey, PureGym assures there will be a “continuity of service.”
PureGym’s Broader Strategy
For its part, PureGym has been eyeing a push into the U.S. and Canada under the Pure Fitness name, which offers flexible operating hours and zero-contract memberships. The fitness brand had teamed with RCS Real Estate Advisors to grow its North American presence earlier this year. Following its 2008 launch, PureGym has grown to over 1.9 million members with nearly 600 clubs in the U.K., Denmark, Switzerland, U.S., Saudi Arabia and UAE.
Just as wallet-friendly gym operators such as Planet Fitness and Crunch Fitness continue to score among young fitness enthusiasts – particularly Gen Z and millennials — similar gym models across the pond are also thriving, with the U.K. fitness industry valued at $7.6 billion, according to one recent market report.
