PureGym to serve as proposed "Stalking Horse
Bidder" in court-supervised sale process to acquire majority of
assets
Remains committed to serving members and
communities with best-in-class gym services
NEW
YORK, Sept. 10, 2024 /PRNewswire/ -- Blink
Fitness ("Blink" or the "Company"), the affordable fitness brand
known for its commitment to an inclusive and inviting environment,
today announced that it has reached an agreement with Pinnacle US
Holdings – a subsidiary of PureGym Ltd. ("PureGym"), a leading
global gym operator, to acquire Blink's corporate operations and a
substantial portion of Blink's locations, with a focus on
New York and New Jersey. The agreement is subject to court
approval and gives PureGym 'stalking horse' status ahead of an
auction, scheduled to take place on October
28 if competing bids are received.
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"We are pleased to reach this agreement with PureGym, which
marks an important step in our sale process," said Guy Harkless, President and Chief Executive
Officer of Blink Fitness. "For many years, Blink has provided our
members with an inclusive, community-focused gym destination. 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.
He continued, "We are confident that Blink's foundation as an
affordable fitness brand will provide a strong base for new
ownership to build upon. We know how important fitness is to those
who choose to work out at Blink, and we continue to go the extra
mile for all of our members. On behalf of the management team, I
want to thank the entire Blink Nation for their continued focus,
commitment, and hard work that has continued unabated throughout
the filing period."
Humphrey Cobbold, CEO of PureGym
said, "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.
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."
PureGym is committed to ensuring continuity of service for
Blink's members in New York and
New Jersey by maintaining the
high-quality fitness experience that Blink members have come to
expect. As part of their strategic expansion into the U.S. market,
PureGym plans to invest further in these gyms to enhance the
customer fitness experience through facility upgrades that align
with PureGym's mission to inspire a healthier world by providing
accessible, high-quality fitness options.
Agreement Details
On August 12, 2024, Blink
announced that it had made the decision to commence an efficient
and value-maximizing sale process to position the business for
long-term success. To facilitate the sale process, the Company
filed voluntary petitions for relief under Chapter 11 of the U.S.
Bankruptcy Code. In connection with the Chapter 11 filing, Blink
has entered into a stalking horse agreement with PureGym, whereby
PureGym, whose investors include Leonard
Green & Partners and KKR, would acquire Blink's
corporate operations and a substantial portion of Blink's
locations, with a focus on New
York and New Jersey. The
base purchase price is $105 million
in cash and PureGym also intends to assume certain liabilities. The
agreement remains subject to higher or otherwise better offers,
Court approval, and other customary conditions.
While Blink's Texas,
Illinois, and California locations are not included in the
PureGym agreement, Blink remains encouraged by the performance of
these gyms and is actively continuing to explore the sale of these
locations.
Throughout the court-supervised sale process and as it
transitions to new ownership, Blink will continue to provide
members with the high-quality fitness experience they have come to
expect.
Additional Information
Additional information regarding the Company's court-supervised
process is available at Blink's restructuring website,
http://www.BlinkFitnessFuture.com.
Court filings and other information related to the proceedings
are available on a separate website administered by the Company's
claims agent, Epiq, at https://dm.epiq11.com/BlinkFitness or
at 877-607-9009 (for toll-free U.S. and Canada calls) or 1-971-365-4515 (for tolled
international calls).
Advisors
Blink Fitness is represented by Young
Conaway Stargatt & Taylor, LLP as legal advisor, Moelis
& Company as financial advisor, and Portage Point Partners as
restructuring advisor, with Steven
Shenker serving as Chief Restructuring Officer.
PureGym is represented by Latham & Watkins LLP as legal
advisor, PJT Partners as investment banker, and RCS as real estate
advisor.
About Blink Fitness
Blink Fitness - a premium and affordable fitness brand known for
its commitment to an all-inclusive environment - is the gym for
"every body" who wants to feel their best and improve their life
through fitness. Blink provides a super-friendly and squeaky-clean
experience with more than 80 locations throughout New York, New
Jersey, California,
Illinois, Massachusetts, and Texas. Blink has been ranked on the Inc. 5000
list four times, was recognized as one of the top health clubs by
Club Industry, and has been acknowledged for its affordability on
"best gym" lists by Men's Health, Sports Illustrated, Time Out New
York, Byrdie, and Forbes Health.
For more information about Blink, visit us here.
About PureGym
PureGym is a leading global gym operator, with close to two
million members across more than 600 gyms globally. PureGym has
corporate owned gyms in the UK, Denmark, Switzerland, and the USA (the latter under the Pure Fitness brand)
in addition to 20 sites operating with a franchise partner in
Saudi Arabia and the UAE (under
the PureGym Arabia brand).
PureGym was launched in the UK in 2009 where it pioneered the
model for affordable, flexible, high-quality fitness clubs and is
now the clear market leader in the UK market. Typically, its
members pay monthly and have no contractual commitment. Most of its
gyms are open 24/7 and offer a full range of fitness equipment,
including cardiovascular equipment, fixed-resistance and free
weights as well as classes. PureGym is jointly owned by
Leonard Green & Partners, KKR
and over 100 members of the Group's management team.
As of June 30, 2024, Pure Gym had
387 gyms in the UK, 161 gyms in Denmark, 45 gyms in Switzerland, 3 gyms in the USA and 20 franchise gyms in the Middle East (18 in Kingdom of Saudi Arabia and 2 in United Arab Emirates).
Contact:
Media:
Rachel Rosenblatt / Rose Temple
FTI Consulting
BlinkComms@fticonsulting.com
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SOURCE Blink Fitness