Join our daily newsletter At The Bell to receive exclusive market insights
- Viva Leisure (VVA) has executed a binding business sale agreement to buy six Pinnacle health clubs in Victoria
- Because of various conditions, the final consideration is unknown but will sit between $6.05 million and $6.25 million
- Upon completion, Viva Leisure will increase its presence in Victoria from eight to 14 locations and will add another 6500 members to its register
- The acquisition is expected to be completed in the next 60 days
- Viva Leisure has ended the day 2.73 per cent in the red with shares trading at $2.85
Viva Leisure (VVA) has executed a binding business sale agreement to buy six Pinnacle health clubs in Victoria.
Depending on various conditions, the final consideration is unknown, but will sit between $6.05 million and $6.25 million.
This sum will be funded equally through debt and equity from a recent capital raise.
The six locations are located in Caribbean Park, Mulgrave, Oakley, Parkdale, Scoresby and Upwey.
Upon completion, Viva Leisure will increase its presence in Victoria from eight to 14 locations and will add another 6500 members to its register.
“The acquisition of Pinnacle health clubs expand on and continues to cement Viva Leisure’s position as a leading and fast-growing health club owner and operator in the Australian market,” CEO and Managing Director Harry Konstantinou commented.
“In addition, the acquisition will strengthen and double Viva Leisure’s Victorian metropolitan presence and will provide further synergies such as marketing,” he said.
“The Pinnacle business is a highly complementary business to Viva Leisure and provides attractive membership options which could be rolled out through the rest of the Viva Leisure network,” he added.
The acquisition should finalise in the next 60 days.
Viva Leisure has ended the day 2.73 per cent in the red with shares trading at $2.85 in a $240.1 million market cap.
