Blink Fitness Signs Asset Purchase Agreement with PureGym

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Sep 10, 2024, 15:00 ET

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.

"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
[email protected]

SOURCE Blink Fitness