SYDNEY, AUSTRALIA: Viva Leisure Limited (ASX: VVA), also known as Viva, has announced the acquisition of iFitness 24/7, the premier health club operator in the Northern Territory.
This acquisition of iFitness 24/7 not only marks Viva’s entry into the region but also significantly enlarges its national presence.
Commenting on the acquisition, Viva’s Managing Director and CEO, Harry Konstantinou said: “We are genuinelexcited to enter into the Northern Territory market with the strategic acquisition of iFitness 24/7.
This expansion not only grows our network but also diversifies our geographical presence, bringing Viva’s exceptional service and community focus to a new membership audience.
The addition of these locations to our portfolio is a testament to our team’s hard work and dedication to broadening our reach and impact. We are excited to welcome over 5,000 new members to the Viva family and look forward to the opportunities this new market will bring to our stakeholders.”
Key Highlights of the Acquisition:
Strategic Market Entry: Viva’s acquisition of iFitness 24/7 marks its establishment in the Northern Territory, broadening its reach.
Expansion of Corporate Owned Locations: Viva’s portfolio now boasts 173 corporate-owned locations, despite the closure of a hiit republic location due to lease expiration.
Financial Details: The acquisition, valued at $5.2 million, was paid in cash from existing financial facilities and cash reserves. iFitness is projected to add approximately $1.5 million in EBITDA and $4.4 million in revenue for the fiscal year 2025.
Membership Growth: The deal brings over 5,000 new members into Viva’s expanding network.
Brand Expansion: The rebranding of the acquired locations to Club Lime will increase the number of clubs under this brand to 112, cementing Viva’s position as Australia’s largest non-franchised health club brand.
Continued Growth Strategy: This acquisition is part of Viva’s aggressive expansion plan, which includes 10-15 additional locations for the fiscal year 2024.
Guidance Confirmation: The acquisition is in line with the guidance numbers provided for FY2024 and the Q4-2024 run-rate.
This strategic move is expected to strengthen Viva Leisure’s leadership in Australia’s health club industry and support its vision for continued growth and market expansion.