Basic-Fit announces intention to launch Initial Public Offering and listing on Euronext Amsterdam

Basic-Fit N.V., EuropeActive's partner and the largest "value-for-money" fitness club operator in Europe, announced today its intention to launch an initial public offering (the “IPO” or the “Offering”) and listing on Euronext Amsterdam.
 
The envisaged Offering will consist of a primary offering of new ordinary shares (the “New Shares”) and a secondary offering of existing ordinary shares (the “Existing Shares”) held by certain current shareholders. Net proceeds of the sale of New Shares will be used to refinance a portion of the Company’s indebtedness and to repay shareholder loans in full, improving the debt maturity profile, increasing the financial flexibility and positioning the Company for the continued implementation of its growth strategy. The listing is expected to take place in the near future, subject to market conditions. 
 

Company highlights

  • Largest "value-for-money" or low-cost fitness club operator in Europe measured by number of clubs with 351 clubs in the Netherlands, Belgium, Luxembourg, France and Spain and over one million members as at 31 March 2016
  • Track record of growth, opening 78 new clubs in 2015 and 13 new clubs in the first three months of 2016 with the target of opening 65 to 75 clubs in total in 2016, and a similar number per year over the medium-term
  • Active in the large and growing European fitness market, driven by increasingly favourable demographic and macro-economic developments, benefiting from an increased awareness of healthy lifestyles across various demographics and government initiatives to publicise the health benefits of increased physical activity, with the low-cost segment driving increased penetration rate levels 

  • High value-for-money proposition and core fitness offerings, flexible memberships and a network of clubs across five European countries, which we believe resonate strongly with those entering the fitness market for the first time 

  • Scalable and proven business model well positioned to capture growth opportunity in the low- cost fitness market in existing geographies 

  • Significant growth and value-creation opportunities driven by the maturation of the Company’s existing estate, continued roll-out of new clubs, leverage “add-on” revenue opportunities and increasing secondary income sources as well as potential for further consolidation in a fragmented market 

  • Attractive financial characteristics with €202.2 million in revenue, €60.1 million Adjusted EBITDA, an attractive margin profile and strong underlying cash generation in FY 2015
  • Proven committed management team with extensive experience in the sector with a strong institutional management structure 

Highlights of the Offering

  • The Offering will consist of a primary offering of New Shares and a secondary offering of Existing Shares held by certain current shareholders
  • The Offering is expected to be available to institutional investors and retail investors in the Netherlands, and to certain qualified institutional investors in various other jurisdictions 

  • Following the Offering, René Moos (the Company’s CEO and co-founder) intends to remain a significant long-term shareholder in Basic-Fit