Blink Fitness Signs Asset Purchase Agreement with PureGym
Posted: September 10, 2024 in Chains
Blink Fitness
NEW YORK, N.Y. – Blink Fitness (“Blink” or the “Company”), the affordable fitness brand known for its commitment to an inclusive and inviting environment, announces it has reached an agreement with Pinnacle US Holdings, a subsidiary of PureGym Ltd. (“PureGym”) and a leading global gym operator, to acquire Blink’s corporate operations and a substantial portion of Blink’s locations, with a focus on New York and New Jersey. The agreement is subject to court approval and gives PureGym ‘stalking horse’ status ahead of an auction, scheduled to take place on October 28 if competing bids are received.
“We are pleased to reach this agreement with PureGym, which marks an important step in our sale process,” said Guy Harkless, President and Chief Executive Officer of Blink Fitness. “For many years, Blink has provided our members with an inclusive, community-focused gym destination. As we have worked this year to reinvigorate our most popular locations and elevate our member experience, we are encouraged by PureGym’s interest in the Blink business model and strategy, and their belief in Blink’s mission to democratize fitness for all.
He continued, “We are confident that Blink’s foundation as an affordable fitness brand will provide a strong base for new ownership to build upon. We know how important fitness is to those who choose to work out at Blink, and we continue to go the extra mile for all of our members. On behalf of the management team, I want to thank the entire Blink Nation for their continued focus, commitment, and hard work that has continued unabated throughout the filing period.”
Humphrey Cobbold, CEO of PureGym said, “We have long admired Blink for the premium and affordable fitness experience that the team has delivered, and their commitment to helping members improve their life through fitness. This agreement to be the stalking horse bidder in the court-supervised sale process lays the foundation for PureGym to successfully expand its footprint in the U.S., supporting our purpose-driven mission to inspire a healthier world at an accessible price.”
PureGym is committed to ensuring continuity of service for Blink’s members in New York and New Jersey by maintaining the high-quality fitness experience that Blink members have come to expect. As part of their strategic expansion into the U.S. market, PureGym plans to invest further in these gyms to enhance the customer fitness experience through facility upgrades that align with PureGym’s mission to inspire a healthier world by providing accessible, high-quality fitness options.
Agreement Details
On August 12, 2024, Blink announced that it had made the decision to commence an efficient and value-maximizing sale process to position the business for long-term success. To facilitate the sale process, the Company filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code. In connection with the Chapter 11 filing, Blink has entered into a stalking horse agreement with PureGym, whereby PureGym, whose investors include Leonard Green & Partners and KKR, would acquire Blink’s corporate operations and a substantial portion of Blink’s locations, with a focus on New York and New Jersey. The base purchase price is $105 million in cash and PureGym also intends to assume certain liabilities. The agreement remains subject to higher or otherwise better offers, Court approval, and other customary conditions.
While Blink’s Texas, Illinois, and California locations are not included in the PureGym agreement, Blink remains encouraged by the performance of these gyms and is actively continuing to explore the sale of these locations.
Throughout the court-supervised sale process and as it transitions to new ownership, Blink will continue to provide members with the high-quality fitness experience they have come to expect.
Additional Information
Additional information regarding the Company’s court-supervised process is available at Blink’s restructuring website, www.BlinkFitnessFuture.com.
Court filings and other information related to the proceedings are available on a separate website administered by the Company’s claims agent, Epiq, at dm.epiq11.com/BlinkFitness or at 877-607-9009 (for toll-free U.S. and Canada calls) or 1-971-365-4515 (for tolled international calls).
Advisors
Blink Fitness is represented by Young Conaway Stargatt & Taylor, LLP as legal advisor, Moelis & Company as financial advisor, and Portage Point Partners as restructuring advisor, with Steven Shenker serving as Chief Restructuring Officer.
PureGym is represented by Latham & Watkins LLP as legal advisor, PJT Partners as investment banker, and RCS as real estate advisor.
