SYDNEY: Viva Leisure Limited (ASX: VVA) has announced a strategic acquisition of a 25% equity stake in World Gym Australia (WGA) along with three corporate locations in Queensland.
Valued at approximately $16.7 million, this acquisition marks a major milestone as the second-largest in Viva’s history.
It is fully funded through existing cash reserves, banking facilities, and up to $1 million in VVA scrip.
This acquisition is expected to bring substantial financial and strategic benefits, further boosting Viva’s growth. Harry Konstantinou, CEO and Managing Director of Viva Leisure Limited, expressed enthusiasm about the acquisition, highlighting its expansion of Viva’s network to over 450 locations. This move will not only enhance Viva’s offerings but also introduce a new market for Viva Pay and other technologies throughout the network. Viva’s success in integrating Plus Fitness is expected to replicate with WGA, aiding franchisees in making their businesses more profitable.
WGA founders, Mike Nysten and Jonathan Davie, shared their excitement about partnering with Viva Leisure. They believe that with Viva’s support and systems, World Gym Australia can surpass previous growth milestones and aim to become Australia’s leading large-format full-service gym network.