Our client Fitness Hut was Portugal’s first mover in the “low-cost gyms” space, introducing the concept to the Portuguese market in 2011. By removing the frills such as swimming pools, steam rooms and cafes, concentrating on the equipment and fitness classes, opening in urban locations, it identified and executed on a niche and grew rapidly.
Clearwater was brought in by Fitness Hut to help the owners – three shareholders and two financial partners – to crystallise the value they had created over the years and exit the business on the best possible terms.
Leveraging regional contacts and sector-specific insights to secure the highest possible valuation for our client.
Personal bests / Supporting a change in direction
The buyers of Fitness Hut were Bridges Fund Management, a UK-based investor which was known to our UK office. At the time it had a stake in Viva Gyms, a leading low-cost gym business in Spain. Buying Fitness Hut allowed it to gain a market leadership position in the sector and expand across the Iberian Peninsula.
Leveraging regional contacts and sector-specific insights to secure the highest possible valuation for our client. It is a template we have carried forward and a factor in our favour as we pursue more deals in a world where businesses and buyers are globally active.
We succeeded via a cross-border approach and by making sure that the equity story we told reflected the growth potential and scalability of the low-cost gym concept.
Cross-border collaboration to generate the right interest
As Fitness Hut was growing in Portugal, Clearwater was expanding across Europe. We were able to combine the detailed sector experience held across our regional teams and were chosen by Fitness Hut to find a buyer.
Getting the equity story right is fundamental to the success of any sale. Before we pitched Fitness Hut, we needed a narrative which truly reflected the first mover advantage for the brand as well as the growth potential for the low-cost gym sector as a part of the global trend towards fitness and well-being.
The low-cost gym model was an innovative new approach and has proven its worth in the years since.
The Clearwater difference
1 Create a narrative that shows the unique selling points of the business and resonates with buyers
2 Draw on our cross-border experience to put together a sector expert team with broader contacts
3 Identifying a compatible purchaser which was growing in the region with similar interests
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Success stories
