EasyGym Latest Chain To Get Fit For Sale

Another of Britain's fitness club chains is limbering up for a sale as the owners of easyGym prepare to auction the business amid a frenzy of corporate activity across the sector.

Sky News understands that the major shareholders of easyGym – who do not include Sir Stelios Haji-Ioannou, the high-profile easyGroup founder – have appointed Houlihan Lokey, an investment bank, to oversee a sale later this year.

EasyGym has approximately 15 sites, more than half of which are in London, and its management team is said to believe there is considerable scope to continue expanding the business.

The business is controlled by Argosy Capital, an Isle of Man (Swiss: MAN.SW - news) -based private equity firm, and a group of wealthy individuals based in the Middle East through a vehicle called Fit & Healthy Holdings.

Its management team is understood to hold a 20% stake.

EasyGym is targeted at the cheaper end of the UK gyms sector, which has grown more rapidly than premium chains, and now has roughly 60,000 members, according to a person close to the company.

The 'Easy' brand has been licensed by the fitness chain from Sir Stelios's group since 2010, alongside ventures in aviation, hotels and car rental.

Preparations for a sale of easyGym come as the international empire of Fitness First – once the UK's largest chain – gets ready to be broken up.

Pure Gym, another low-cost operator, is preparing for a stock market listing, and last week held a beauty parade of investment banks to work on the deal.

The Gym Group (LSE: GYM.L - news) , which also operates at the value end of the market, listed on the stock market in November and has since seen its value rise from £250m to more than £310m.