- Viva Leisure will buy eight Healthworks Fitness Centres in Queensland for $2.7 million
- These additions mean the company has now secured 70 locations in total and operates in every Eastern Australia state
- Roughly 10,000 new members will be added to Viva’s portfolio
- Once the acquisition is completed, the Healthworks sites will be rebranded as Club Lime – Viva’s own fitness centre brand
- Viva Leisure’s share price is up a healthy 8.87 per cent today, with shares trading at $2.21 apiece
Viva Leisure has signed a binding agreement to buy eight Healthworks Fitness Centres in Queensland for $2.7 million.
The acquisition marks yet another strategic step for the company, following its previous acquisition in regional Victoria.
“Entering the Queensland market for the first time with such a high-quality acquisition of the eight Healthworks clubs is an exciting milestone for the company,” CEO and Managing Director Harry Konstantinou said.
The eight centres are located in Aspley, Deagon, Ipswich, Mooloolaba, Newstead Gasworks, Redcliffe, Teneriffe, and West End.
The acquisition will be fully funded through existing cash reserves and is expected to be immediately EPS accretive.
Approximately 10,000 new members will be added to Viva Leisure’s growing portfolio once the acquisition settles in the next 30 days.
Additionally, the fitness centres will be rebranded to Club Lime – Viva Leisure’s affordable fitness club brand.
The company expects to overlay its membership sign-up and online model to enhance the experience for new and existing members at the Healthworks sites.
The health and leisure company consider this to be just the beginning.
It plans to open additional Queensland locations, both under the Club Lime and hit republic brands.
“We expect to be operating over 15 locations in Queensland within the next 12 months,” Harry continued.
These additional eight locations mean the company has secured 70 locations with 52 clubs acquired or currently operating, five opening shortly, and a further 13 secured.
On June 30, Viva Leisure operated 40 clubs, representing a significant achievement and the company’s ability to expand quickly.
Once this acquisition settles, Viva Leisure will be operating across all the Eastern states of Australia.
Viva Leisure’s share price is up a healthy 8.87 per cent today, with shares trading at $2.21 apiece as at 3:04 pm AEDT.