Migros Teams up with Injoy Sport-Tiedje Maps out Migros Already Acquired 30% the Services of Inline

Jan 24

Octane buy backs up European NEW! You’re reading a special issue of Fitness News Europe, an sales push at Nautilus independent business news publication for executives autilus Inc. is preparing in the international fitness Brunswick a major sales push into industry. With an online portal the European market, and a bi-monthly newsletter, snaps up Cybex which was set in mo- Fitness News Europe provides Ntion late last year and could be reliable business news and often exclusive analysis on the itness News Europe strongly supported by its acqui- fast-moving fitness market. was heading to the sition of Octane Fitness. After its vigorous sales ex- Turn to the back page for printer for this special further information about pansion in the U.S. in the last issue when Brunswick the publication, to register FCorp. announced that it was two years, the company behind for a free trial and obtain your forking out $195 million to the Bowflex, Nautilus, Schwinn subscription at a special launch Jeff Collins. buy Cybex International, as and Universal fitness equipment rate. part of its plans to double the brands has identified interna- chines. sales of its Life Fitness busi- tional development as one of the The acquisition came just as CONTENTS ness by 2020. major purposes in the $115 mil- Nautilus started to implement That probably doesn’t put lion buy of Octane Fitness. far-reaching international ex- Gear an end to Brunswick’s latest While Nautilus makes only pansion plans, to double the size Octane to support Nautilus acquisition drive, as we’re about 2% of its sales outside of of its offering with an adjusted sales push...... p1-2 told that the company is the U.S. market, Octane Fitness range for the European market, Migros teams up with studying more than 50 com- has strongly established distri- and to establish distribution Injoy ...... p1-9 panies. bution in Europe and some oth- across most countries in the next Matrix builds up global er international markets. It has two years. team...... p3 Fitness takes centre stage Read the full story on established a solid brand repu- “Octane has key partnerships tation, focusing on a distinctive and infrastructure in place, in Munich...... p3 fitnessnewseurope.com Icaros prepares takeoff....p5 range of low-impact cardio ma- which we believe will help ac- Continued on page 2... Retail New Domyos brand manager...... p6 Migros teams up with Injoy Sport-Tiedje maps out Migros already acquired 30% the services of Inline. expansion...... p7 of the company two years ago “We will continue to oper- Gyms from its owner and chief ex- ate independently but we will Health City divests French ecutive, Paul Underberg. The take advantage of each oth- clubs...... p9 purchase of his remaining 70% er’s strengths to build up our CMG Sports Club targets stake was sealed earlier this business in German-speaking European cities...... p10 month through Migros Freizeit countries, and to work together Deutschland, the German sub- more efficiently on projects that Other news sidiary of Migros Zürich, at an are relevant to all of us, such as Portugal association chief undisclosed price and subject to online fitness,” explains Under- {p4}, Fitspiration congress regulatory approval. berg. {p4}, Geek briefs {p5}, Sports igros, the leading A sprawling Swiss retail group, Perhaps just as importantly, Direct {p6), Argos {p6}, DW Sports {p6}, Budo & Fitness Swiss retail group, Migros is a leading player in the the chief executive adds that the {p6}, Neoness {p9), Austrian is taking part in the Swiss fitness market through agreement should give the In- consolidation of the market {p11}, Pure Gym {p11}, Migros Zürich. It runs 6 Migros line team more time to focus on Snap Fitness {p11} MEuropean fitness industry with Fitness Park clubs and another setting quality standards in the the full acquisition of Inline/ 36 Activ Fitness clubs, which to- German fitness market. “This is Injoy, a German consultancy gether have about 85,000 mem- a crucial time for the sector in Fitness News Europe is for the fitness industry and the bers. Three years ago Migros Germany,” he insists, pointing published by Zelus (France) owner of the Injoy franchise, Zürich moved into the German to the legislation adopted by the [email protected] which boasts 200 quality gyms market with another quality German government two years Editor: Barbara Smit in German-speaking countries. concept, Elements, leaning on Continued on page 9... [email protected]

FITNESS NEWS Europe 1 Top Gear

... Continued from page 1 Collins says that these Combined (pro forma) projected sales 2015 celerate our growth outside the plans are broadly un- Nautilus Inc. Octane Fitnes U.S.,” says Jeff Collins, who has changed, but European $336 million $65 million would be approached in the been leading a strategic plan to investments are likely to same way in the years to come. ramp up international distri- take on another dimen- Nautilus/Octane: $401 million He is ultimately targeting an bution for the Nautilus group’s sion with the acquisition 4% equal spread of sales between brands. He was promoted as the of Octane Fitness. It has a 2% the U.S. and other markets, al- company’s vice president and European head office and though he acknowledges that general manager in charge of a warehouse in the Neth- this may take more than a few the retail market last month. erlands, dealing with years. Nautilus bought Octane from sales across Europe, the North Castle Partners, forming Middle East and Africa, Complementary ranges a company with joint pro forma while the British market 94% Apart from expansion in in- sales of about $400 million, and is covered from a sepa- ternational markets, the complementary activities in the rate subsidiary. Nautilus group points to home and commercial equip- “We have Europe cov- complementary product ment markets. ered and our sales have 94% North America ranges and distribution tar- Octane Fitness is estimated been making steady 2% Europe, Middle East and Africa gets as another part of the to have reached a turnover of progress,” said Leo 4% Asia Pacific, Latin America rationale behind Octane’s about $65 million for 2015, with Schreuders, Octane’s Source:a Nautilus Inc. acquisition. Since it pulled a share of 23% in international managing director for out of the commercial mar- markets. About 10% of the sales Europe, the Middle East sumers, it will help bring back ket four years ago, Nautilus are derived from Europe, the and Africa (excluding the U.K.). that market.” has been focusing on the re- Middle East and Africa, with an- “The biggest European markets For this purpose, the com- tail market, direct and online other 13% coming from Asia Pa- for us are the U.K., Germany and pany wants to replicate some sales with cardio equipment. cific and Latin America. Nauti- the Netherlands, and Scandina- of the strategic investments it The company wants to take lus said in an update earlier this via has been performing better has made in the North Ameri- advantage of Octane’s re- week that it expected to report and better.” can market. “We have about tri- lationships in the special- sales of about $336 million for The European team is pre- pled our investment in product ist retail market to move its 2015, up by 22%. paring for two big commer- development in the last three Nautilus and Schwinn brands Octane has achieved com- cial product launches this year, years,” Collins explains. “It all into that business. Some of pound annual growth rates of starting with the XT-One, which starts with robust consumer re- Octane’s products could be 11% in sales and 17% in EBIT- is described as “four cross search, to make sure we’re pro- marketed through the direct DA for the last three years. Its trainers in one”. Already avail- viding the right products for the channels where Nautilus is EBITDA for 2015 was estimat- able in the U.S. market, the XT- consumer.” most established, the compa- ed at $10.9 million, amounting One will be launched in Europe Nautilus put together a re- ny added. Cost savings could to an EBITDA margin of about in April. The second innovation search team that is meant to become more apparent in the 16.8% and an acquisition multi- is a running product that Octane travel around Europe in the second year, through joint ple of 10.5 times EBITDA. . will bring to FIBO. coming weeks, to study con- distribution and sourcing ar- Octane Fitness derives more sumption and requirements in rangements. Adjusted product range than 60% of its sales from its terms of features, digital apps Tim Porth and Dennis Lee, When the takeover was an- commercial division and 40% or tracking. They should provide who established Octane Fit- nounced earlier this month, from specialty retail. The share detailed input for product devel- ness in 2001, are to remain Nautilus had already opened of commercial is larger in Eu- opment from the middle of the on board. Subject to adjust- talks with potential partners to rope, driven by products such as year, meaning that an expanded ments, the €115 million buy is rapidly broaden its distribution the Lateral-X, a three-dimen- range of products adjusted for to funded with cash on hand across Europe. The company sional cross trainer. the European market could start and $80 million of term debt. wants to capitalize on robust selling about one demand for the Bowflex Max Strategic investments for year later. Trainer, which is marketed as a Europe Regardless of cardio machine for a full-body The European launches of the acquisition of workout. It was launched last the Bowflex Max Trainer and Octane Fitness, year in the European markets the Schwinn Airdyne AD8 have Collins emphasiz- where Nautilus is most strongly strengthened Nautilus’ belief es that Nautilus established, such as the U.K. and that demand remains strong for has no intention of Germany. innovative home fitness gear. rushing its Euro- Nautilus started conducting “We’ve kind of proven that out pean plans. “We’re extensive consumer research in with the Max Trainer,” says taking a slow and Europe, to widen its range with Collins. “With the countries still steady approach,” products adjusted to Europe- experiencing currency issues, he says. an requirements and shopping we’re beating all expectations While the in- patterns. And it started study- that we and our distributors vestments are ing warehousing in Europe, to had with this product, down to gathering pace in Octane is striding ahead in the commercial be operational later this year to the retailers. If we are providing Europe, Collins said equipment market with products such as the XT-One, support its European sales push. innovative solutions to the con- that Asian markets to be launched in Europe in April. Disclaimer: Content in this report and on the related website is for your general information and use. It does not constitute the offering of investment advice (either actual or implied) and should not be relied upon in making (or not making) any decision. We use all reasonable endeavors to ensure the accuracy of the content but do not guarantee or warrant the accuracy, completeness or timeliness of any content whether from a third party or otherwise. Views expressed by third parties are their own.

2 FITNESS NEWS Europe Top Gear Matrix builds up global team The target was arranging some other manage- Daniel Clayton. She joined Ma- set for the en- ment functions to add more re- trix in 2013 and was previously tire Johnson gional focus. marketing director for the U.K. Health Tech “We’re at the point where Johnson Health Tech reached group, which we have brand recognition sales of $564 million for 2014, includes the in established markets but in with a share of about 68% com- Horizon and emerging markets the group is ing from commercial equip- Vision brands, very eager to focus on our goal ment. The company estimated but the focus to become number one,” said that it ranked third in the global for develop- Bonnett, “and a consistent ap- market, after Icon Health & Fit- ment and for proach across the region is cer- ness and Life Fitness, and just Bonnett’s ap- tainly a key factor in this.” ahead of Technogym. pointment is The company estimates that The Taiwanese company has on Matrix Fit- Matrix is rapidly getting close been investing most abundantly The Matrix Connexus system for functional training. ness, the Tai- to market leadership in the in the development of its inter- ohnson Health Tech has ap- wanese com- commercial business in Ger- national commercial business in pointed Gemma Bonnett in pany’s brand of commercial many, and that it comes second the last years. Johnson opened J the new function of strate- fitness gear. in the U.K, France and Spain. It four subsidiaries last year alone, gic marketing director for Eu- The plans have already led to lags behind in Italy, and all the including offices in Canada and rope, the Middle East and Afri- substantial investment in Eu- more so in Eastern Europe and Mexico. Russia and Poland are ca, as part of its plans to achieve rope in the last years. This year emerging markets. two of the countries that could global leadership in the fitness the company is adding global Bonnett joined the global de- benefit from extra support this equipment market in 2017. development functions and re- velopment team headed up by year. Fitness takes centre stage at ISPO he buzz around wear- motivated by steady growth in able technologies and the number and quality of fit- growing public inter- ness-related exhibitors, as well est in fitness have en- as a widening target group. Tcouraged the organisers of ISPO “New target groups like train- Munich to provide more prom- ers, sports instructors, medical inent and traffic-friendly space and human resources profes- to health and fitness, as part of sionals have become aware that the international sporting goods ISPO has something interesting fair’s revised layout this year. to offer for their business,” says The organisers already ac- Hefter. knowledged increasing focus on Predictably, the layout puts fitness with the launch of ISPO the spotlight on wearable tech- Health & Fitness in the C1 hall nologies, such as fitness track- two years ago, and they built ers, smart watches and other up an extensive side program digital innovations, with exhibi- for the sector. But this year the tors from Fitbit to TomTom, Po- fitness-related companies have lar, Garmin, Samsung and more. Photo: Messe Muenchen. been moved to the centre of the They are located in a wearables action, in the larger B4 hall and section along one of ISPO’s two “We have adopted a clear hall in concepts like Outdoor Gym, adjacent to the performance central walkways, which are of- structure with an extensively cross runs and obstacle courses, sports companies. ten jammed with visitors. designed middle aisle that works whose participants have com- While the C1 hall was fully The focus on wearables is also as a spine for the whole com- mon interests in products such booked with 115 exhibitors last reflected in the side programme munity,” explains Constanze as technical running footwear year, nearly 140 exhibitors have and the simultaneous organiza- Fuchs, community manager for and fitness trackers. The third taken up their spot in the new tion of the Wearable Technolo- Sports Fashion, Performance Running Shoe Symposium or- Health & Fitness hall, which gies Conference Europe, in the and Health & Fitness for ISPO ganised in partnership with provides about 1,000 square International Congress Centre Munich. That central walkway is Runner’s World is meant to ad- meters of extra space. The move near the west entrance on Jan. the location for many activities dress this entire community. is particularly judicious for sup- 26-27. and presentations around yoga, Several other apparel and pliers of products such as fitness The entire Health & Fitness Piloxing, nutrition and much footwear companies are repre- trackers, which are targeting hall’s design is meant to provide more. senting the related athleisure fitness enthusiasts as well as an easy overview of the many The changes also highlight trend, in a special section of the runners and many other ath- equipment trends and programs the growing overlap between ISPO Vision hall in B1, such as letes and retailers. that have been making fitness the interests of the fitness, out- Peak Performance, Mizuno and Markus Hefter, ISPO group more appealing in the last years, door and running communi- New Balance. director, says the change was such as functional training. ties. They are coming together FITNESS NEWS Europe 3 Fitness Hub Ireland adopts national physical activity plan he Irish government has vated blood pressure. set aside €5.5 million “The fitness and leisure in- this year for the Na- dustry is going to be more tional Physical Activity important than ever to help TPlan, which aims to get 500,000 the government deliver on its more Irish people active in the promise of getting half a million next ten years. people more active over the next Unveiled in Dublin last week, ten years,” said Ireland Active, the plan is the first ever com- which represents the industry in prehensive program launched Ireland. by the Irish government to tack- The plan includes an annu- le physical inactivity, involving al campaign to encourage more stakeholders from the sports, people to get active more often, The national physical activity plan was unveiled by three Irish government ministers in Dublin last week. Photo: Ireland Active. health and social care sectors. including social media cam- The Irish department of paigns and a new Physical Ac- the National Physical Activi- utive of Ireland Active, is pre- health states that only 32% of tivity Week. This will be part ty Plan. The funding agreed by paring to leave the organisation. Irish adults meet the national of the European Week of Sport, the Irish government does not She will remain a board mem- physical activity recommenda- which was held for the first time include any extra resources for ber of Ireland Active and Europe tions, which call for adults to be in September last year, with Ireland Active so far, but the or- Active, and a member of the active for at least 30 minutes of strong involvement from Eu- ganisation is optimistic that it Healthy Ireland Council. More moderate activity five days per rope Active. will receive such funding in the details on Moloney’s achieve- week. It adds that one in four About €4 million should be coming years. ments at Ireland Active and the Irish children are unfit, over- provided for sports measures Separately, it turns out that group’s plans coming up in Fit- weight or obese and have ele- this year to deliver actions in Christine Moloney, chief exec- ness News Europe. New chief for Portuguese Full house for Fitspiration fitness industry group ore than 200 gym long term. “The big oppor- club operators tunity for the fitness sector oão Pimentel was appoint- the population aged at least registered for the in the Netherlands is in the ed for two years as pres- 15 years. The Barómetro pro- Fitspiration con- area of healthcare, as focus J ident of Associação dos duced by the organisation in- Mgress in Utrecht this week, in this sector is shifting from Ginásios de Portugal (AGAP), dicates that the sector gen- to hear about the prospects treatment to prevention,” the Portuguese fitness clubs erated a turnover of €286 of the Dutch industry and says Rabobank’s special- association. He formally took million in 2014. new business models to deal ist, adding that gyms with office at an assembly at the To find out all about the with the proliferation of sufficient and well-trained Museu do Desporto in Lisbon companies and trends that low-cost operators. staff are best-equipped to earlier this month. are shaking up the Portuguese Among the speakers was take advantage of this trend. Pimentel is one of the fitness market, register for a Martijn Rol, specialised in Monique de Ritter, a re- owners of Kangaroo Health free trial of Fitness News Eu- the catering and leisure searcher at the Strategy Clubs, which runs three gyms rope and look out for our full sector at the Rabobank, Centre of Nijenrode Busi- in Portugal and a corporate market analysis and updates who was asked to provide ness University, studied new club. He succeeds José Júlio on its most interesting and a banker’s perspective on business models for the fit- Vale Castro, who had been in active protagonists. the Dutch fitness mar- ness industry, to innovate charge since 2013. ket’s development. Quite a and encourage more people AGAP’s lead- few mainstream gym own- to get active. The European ership team fur- ers are under pressure, Rol perspective was provided ther comprises found, as Dutch consumers by Herman Rutgers, board vice president José have become accustomed to member at Europe Active. Luís Costa from cheap prices. “You have to The event was organised Go Fit, Pedro Ruiz offer something that stands by Fitspiration, a foundation from Vivafit, Pau- out with a lot of service or supported by suppliers from la Almeida from create a unique experience, Technogym, Precor and Life Aquafitness and otherwise they will go for Fitness to major distribu- Bernardo Novo the cheapest option,” he ex- tors such as the HDD Group. from Solinca. plains. Their purpose is to raise AGAP’s latest Rol estimates that the en- Dutch fitness participation market survey es- tire Dutch market’s turn- and to assist their commer- timates that about over slipped by 1% last year, cial customers with market 648,000 members remaining in the range of insights. Fitspiration was work out at 1,300 about €1 billion. Then again, established in 2011 and the gyms around Por- his message to the partic- previous one-day congress tugal, amount- João Pimentel takes over the leadership of the ipants at Fitspiration was was held three years ago. ing to 7.3% of Portuguese fitness clubs association. Photo: AGAP. more encouraging for the 4 FITNESS NEWS Europe Top Gear Fasten your seat belt - Icaros prepares for takeoff

spaceship. the Icaros until they get more It’s all quite a bit comfortable. more strenuous than it Then again, the work- sounds. “You need your out can be intensified with core muscles, your low- special settings. “If you get er back muscles and a horizontal handlebar at- your abs to keep in this tached, you can go into position,” explains Jo- push-up like position, which hannes Schnell, one of is good for your chest and the two managing di- shoulder muscles,” Schnell rectors at Icaros. “You explains. A workout on the can also lean downwards Icaros requires intense con- when you’re doing a centration and doesn’t nor- steep decline, then your mally last more than ten or body weight shifts for- twenty minutes, he adds. ward and you need your The Icaros is the winner of shoulder muscles, your this year’s overall ISPO Brand arms and your chest New award. Schnell and an- muscles.” other industrial designer, With a price tag of Michael Schmidt, started €7,500 to €10,000, the building it three years ago current version of the while working at Hyve, an Icaros is chiefly target- innovation company in Mu- ed at fitness clubs and nich. Icaros was spun off in hotels. The response so September but it still oper- The multiplayer version of the Icaros is expected later this year. far suggests that there ates from Hyve’s offices and Photo: Icaros. could also be strong de- is jointly managed by Schnell s it a bird? Is it a plane? The troller measure the changing mand from gaming arcades and Schmidt, who is one of makers of the Icaros de- angles and transmit the data and affluent consumers. The Hyve’s founders. I scribe it as a mix between to a mobile phone app, which first batch of 50 machines is Early buyers of the Icaros fitness equipment and a then communicates with the to be delivered in March, as- will get a chance to train be- flight simulator – a contrap- virtual reality headset. sembled by a German compa- fore the next update: Lat- tion that allows you to work With the previous version ny specialised in data record- er this year, the company out while you’re virtually pi- of the prototype, you could ers. intends to come up with a loting an airplane and getting train while flying around Just in case the pilot gets multi-player mode, which immersed in an aerial fight. canyons and outer space. But queasy, the Icaros is equipped would enable players to The workout comes from the latest Icaros, which was with the equivalent of a pan- work out while getting into planking on the machine, finalized in the last few days ic button, which instantly dog fights with other vir- which is built like a gyro- for ISPO Munich, will allow switches off the virtual real- tual pilots. At a later stage, scope. The pilot is meant to you to switch to race mode or ity headset. The latest proto- the designers could market a balance on the pitch and roll even to full battle mode – to type has an extra safety fea- smaller and light version of axes to determine his flight work on your abs while chas- ture, allowing beginners to the Icaros, to make it more path. Sensors on the con- ing and destroying enemy limit the maximum incline of affordable for consumers. Geek briefs n Dick Costolo, Twitter’s former chief execu- n Samsung is reportedly preparing the launch n Jawbone has obtained $165 million in fresh tive, announced earlier this week that he in- of a fitness tracking smart watch, internally equity funding, although the deal more than tends to launch a startup focused on personal called Triathlon and otherwise the SMR150. halved the valuation of the U.S. fitness track- fitness. He and Bryan Oki, who runs a health Several online news services displayed leaked er company to about $1.5 billion, down from consulting firm, are to launch a platform to images of the smartwatch and a digital brooch $3.3 billion for the previous round of financing, motivate users to work out. Costolo spread the (which may be unrelated). Sammobile.com The Financial Times reports. Employees were news through screenshots of an announce- predicts that the device will use the bio- given extra shares to compensate for the ar- ment on his Twitter account. It said the plat- processor chipset that Samsung discussed at rangement. The cash injection is from the Ku- form was meant to “go beyond measurement the Consumer Electronics Show in Las Vegas wait Investment Authority (KIA). Separately, it to motivate and drive improvement and make this year. Potential features described in the turned out that Sameer Samat, who became the road to personal transformation fun and reports include a heart rate sensor, body fat Jawbone’s president in June, is leaving the social.” At the same time, Costolo announced measurement and hydration monitoring. The company to return to Google, although he’ll that he would be joining Index Ventures, a ven- South Korean company’s new device appar- continue to advise Jawbone. The funding came ture capital firm, as a venture partner. Costolo ently looks quite similar to the Gear 2, its after the company appeared to be under pres- joined Twitter as chief operating officer in smart watch with a metal frame, a rubber sure, leading to restructuring measures and 2009, became chief executive one year later band and a rotating bezel. Samsung also dis- 60 layoffs in November. Jawbone is to launch a and relinquished the hot seat in September. played a smart belt at the CES, although it re- new family of more advanced fitness trackers mains unclear if that is to be released to the this year. public.

FITNESS NEWS Europe 5 News briefs Retail n Argos, the British cata- logue and online retailing specialist, selling a wide range of New brand manager for Domyos fitness equipment, has been aroline Lanigan is to approached for a takeover by take over in the coming J Sainsbury. The group dis- C weeks as international closed earlier this month that brand manager for Domyos, it had made an approach in Decathlon’s private label for November to buy Home Retail fitness products. She was Group, the owner of Argos as previously in charge of Ap- well as Homebase, a DIY chain. tonia, a much smaller private After the rejection of its initial label focusing on nutrition approach Sainsbury’s has until and healthcare accessories. Feb. 2 to make a firm offer or Domyos has been led for walk away. Sainsbury’s is the the last six years by Philippe U.K.’s second-largest grocer in Bernadat, who has taken up market share. The approach an assignment for the French The Domyos site in northern France. has been interpreted as a de- sports retail giant to explore 1998 has turned into a full- retailer’s coveted Innovation fensive move to fend off an the Iranian market. fledged brand, running its Award. They won for the Ap- offensive by Amazon in the Described as a fitness en- own advertising campaigns tonia Double Use drinks bot- British grocery market. thusiast, Lanigan joined Do- and marketing activities. It tle, fitted with a special spout myos at the start of this year provides some fitness equip- that enables the drinker to n Budo & Fitness has taken and is getting acquainted ment as well as a wide range switch between water and over Boxingstore.se, to broad- with the 160 staff at the fit- of apparel for fitness, danc- flavored energy drinks. The en its assortment with boxing ness brand, to fully take over ing and combat sports. Domyos team’s entry was the gear. The buyer describes it- from Bernadat in the coming Lanigan has been at the Domyos Live free online fit- self as the leading specialist weeks. Decathlon group for 16 years. ness programme. retailer in Sweden for fitness Domyos is run from its After several assignments in Decathlon reached a turn- and martial arts, with an on- own head office, not far from the cycling category, she was over of €8.2 billion in 884 line store as well as eight sta- Decathlon’s campus around asked eight years ago to cre- large-scale sports stores in tionary stores from Malmö Lille in northern France. ate a new private label for 2014, which was an increase in the south to Umeå in the Opened in 2008 after an in- nutrition and health-relat- of 10.6% from the previous north. It sells brands such as vestment of €25 million, the ed accessories for athletes, year. At the end of November Life Fitness, Kettler, Casall Domyos facility in Marcq- ranging from energy bars to the number of stores had in- and Freddy, as well as nutri- en-Baroeul features a devel- drinking bottles and insect creased to 971, including 292 tion and yet more specialised opment centre, a store for repellent. stores in France and 432 in brands for martial arts. Fred- fitness products and a gym. The efforts of Lanigan’s other European Union coun- rik Halldén, managing director The private label creat- team at Aptonia were re- tries. at Budo & Fitness, said that ed by the French retailer in warded last year with the the deal announced last week marked a major step in the company’s investments to expand into combat sports. Box- Sports Direct takes flak ingstore.se was established as ports Direct Interna- them into Sports Direct Fit- ease among some SDI inves- an online retailer in 2011. tional (SDI) has been ness, with monthly member- tors. The retailer has faced S under pressure in the ship prices starting from £5. repeated criticism for lack of n DW Sports Fitness, the Brit- last weeks due to disap- The sports retailer said that transparency, often pertain- ish company that runs sports pointing trading and worries it faced deteriorating trading ing to the function of Mike stores in conjunction with among investors about issues conditions and unseason- Ashley, the group’s major- fitness clubs, saw its sales ranging from corporate gov- al weather over the holiday ity shareholder. SDI’s share increase by 2.6% to £154.4 ernance to working condi- season and could fall short price has shrunk by more million for the year until the tions at its warehouse. of its EBITDA target by up than 40% since the start of end of March 2015. The latest The largest sports re- to £40 million for the fiscal December. accounts filed at Companies tailer in Britain and sever- year until April. The company Meanwhile, SDI said that House indicate that its pre-tax al other European countries had previously set a target of it had acquired an econom- profit doubled to £8.2 million, is active in the home fitness £420 million, but the fore- ic interest in Dick’s Sport- due to lower debt interest market with brands such as cast was adjusted to a range ing Goods, amounting to payments and impairment Kettler and Life Fitness. The of £380 to £420 million, ex- 2.34% of the U.S. sports re- charges. The company operat- assortment includes several cluding costs relating to its tailer’s shares. The company ed 71 gyms and 74 stores last own brands, from Everlast to employee bonus scheme. Al- said the purpose of this and year. The turnover of the fit- Lonsdale, USA Pro and Karri- though several other lead- other such investments was ness clubs declined by 1.9% to mor, a British outdoor brand ing British retailers suffered to “build a relationship and £82.5 million but this dip was bought by SDI and used as from weak traffic in their develop commercial partner- easily compensated for by the a private label for running stationary stores, some were ships” and to “build rela- stores, which saw their sales products. The company also able to compensate for this tionships with key suppliers jump by 8.4% to £71.9 million. moved into the gym market issue with vastly increased and brands.” last year when it acquired 25 online sales. LA fitness gyms and turned The warning added to un-

6 FITNESS NEWS Europe Retail Sport-Tiedje maps out more European expansion

ust a few weeks after its identified ways to expand exchange of takeover of Powerhouse Powerhouse Fitness and to brands. Power- J Fitness, Sport-Tiedje is al- make it more profitable. house Fitness ready searching for locations The Scottish company’s op- has two private to open more stores in the erating margin of nearly labels, Smart- U.K., as part of its wide-rang- 7% for the fiscal year until Tec Nutrition ing plans to reinforce its June 2014 compares weakly and Bodymax leadership in Europe’s home with the 12.2% achieved by Fitness, focus- fitness equipment market. Sport-Tiedje in 2014. ing on strength The acquisition is the bold- “It’s easier for us to im- equipment. est move so far in an ex- prove their structure and to Sport-Tiedje’s pansion strategy that has expand their store network, own brands, Car- transformed Sport-Tiedje. A with the knowledge that we diostrong and predominantly German re- have acquired in Germa- Taurus, have tailer three years ago, it has ny,” says Grau, who became much broad- turned into a European player Sport-Tiedje’s chief execu- er ranges of with 41 stores in seven coun- tive in 1996 and its owner in cardiovascu- tries and estimated pro forma 2011. Some of the investments lar equipment, sales of about €90 million will go into systems and IT, which could wid- Christian Grau, chief executive last year. which could start to improve en Powerhouse’s and owner of the Sport-Tiedje group. The deal makes it an influ- profit margins in the second customer base. ential retailer in two of Eu- year. Due to their ket in Zurich, Sport-Tiedje rope’s largest markets and a complementary ranges, the is preparing for openings in growing player in five others, Omni-channel strategy tie-up between the two re- Bern and Lausanne. selling to private customers While Powerhouse Fitness tailers is unlikely to yield When it comes to Denmark, as well as gyms and hotels. has a strong online business, substantial cost reductions in Sport-Tiedje is searching for “We were searching for a sec- the German retailer’s ap- terms of private label sourc- a Danish country manager to ond pillar to diversify the risk proach calls for offline pres- ing. Then again, Grau says drive its omni-channel strat- of our business,” explains ence to drive its overall sales. that Sport-Tiedje could bring egy, leaning on a store opened Christian Grau, Sport-Tied- The company has thus started added quality to Bodymax in Copenhagen in 2013. je’s chief executive. searching for a fourth loca- through its sourcing infra- But at the same time, With nine stores around tion in London, while Man- structure and quality control Sport-Tiedje is continu- Scotland and England, Power- chester and Birmingham are office in Taiwan. ing to reinforce its business house Fitness reaped sales of the next targets. Sport-Tiedje says it in- in Germany. After five store £22 million for the year until “We drive our custom- tends to stick with the Pow- openings last year, the retail- June 2015, an increase of 23% ers from the web page to the erhouse Fitness brand name, er is already preparing an- from the previous year. The stores, which gives us better the company’s 90 employees other opening in Wiesbaden. Glasgow-based retailer is the access to the customers,” ex- and its warehouse in Glasgow. Sport-Tiedje could also open second-largest specialist in plains Grau. “We can better Sport-Tiedje is searching for smaller stores in cities where the British fitness equipment fulfill his needs and help him an extra board member to re- it already trades, as it did market, which Sport-Tiedje to get his training results, inforce the strategic manage- with an opening near Berlin’s estimates at about £384 mil- which then helps to get more ment at Powerhouse Fitness Alexanderplatz a few weeks lion for 2015 (with £130 mil- recommendations from cus- after the departure of its pre- ago. lion for home gear). tomers to other customers.” vious owners, David and Nigel After its British investment, Sport-Tiedje has already Another big project is the Webster. Sport-Tiedje is unlikely to set up shop in any other coun- From German retailer to European player Swiss investments try this year, but it will still The move into the Brit- expand its reach through the Country Shops 2012 Shops 2015 ish market comes after oth- launch of a Czech-language er sizeable investments last online store. It will be the Germany 14 21 year. Among them is the twelfth website for the retail- Austria 1 3 acquisition of four stores er, after a Polish launch that trading as Fitshop in the triggered soaring orders from Switzerland 1 1 Netherlands, along with sev- the country last year. eral online stores and a rent- Grau acknowledges that U.K - 9 al business. Two stores were quite a few European mar- Netherlands - 5 opened in Graz and Linz, giv- kets have been sluggish and ing Sport-Tiedje sufficient disrupted by small retailers Belgium - 1 offline presence to implement flogging their stock online. Denmark - 1 its multi-channel strategy But he is convinced that in- with three stores in Austria. creased interest in fitness will Stores total 16 41 This year the company is push the European market in going for the same strategy the coming years – and that’s €37 million Over €90 Turnover in Switzerland. Twelve years when his investments in mar- (11/12) million after it moved into the market share will pay off. FITNESS NEWS Europe 7 What we deliver

n Fast, reliable and independent business news from the European fitness industry, leaning on the expertise of specialised journalists with an unparalleled network of contacts across international sports and fitness markets.

n Well-informed and often exclusive analysis relating to the European fitness sector, providing in sights into market dynamics, company strategies and financial opportunities.

n An essential business tool for executives and investors, with regularly updated analysis that is available permanently online, along with news items and features compiled in bi-monthly electronic newsletters.

What we cover

n Business news from leading and upcoming players in the European industry, from gym chains to equipment, footwear and apparel suppliers, as well as retailers and other stake holders.

n Must-read analysis about the most important trends and issues in the European market, along with wider economic, sports and health-related developments that impact the fitness industry.

n Regularly updated company profiles, national market analysis and other fact sheets, forming a journalistic and financial database on the European fitness industry.

Who we are

n Fitness News Europe is published by Zelus, a French company specialised in business information for the international sports, outdoor and fitness industries.

n Fitness News Europe is edited by Barbara Smit, a business journalist and author who has been covering the international sports industry for more than 15 years – for leading business publications as well as specialist newsletters.

You’re welcome to contact us with your news and For further information about Fitness News Europe, views at: please contact us at: [email protected] [email protected]

8 FITNESS NEWS Europe Gyms Health City divests French clubs ealth City Interna- is covered,” explained Jean- He said that Form Dévelop- decisively to this low-cost tional, the Dutch fit- Marc Scéo, Ekkio Capital’s pement would continue to concept after 3i, a British in- ness club operator, president. He said the invest- spread around France and vestment firm, acquired a 55% continues to divest its ment firm embarked on this that Ekkio was holding talks share package in the chain in Hinternational business. The project because the French for other potential acquisi- 2013. Along the way, former company has sold its six clubs market remains more frag- tions, apparently with inde- Health Clubs in Belgium and in and around Paris to Ekkio mented than others in Eu- pendent club owners in other Spain were transferred to Ba- Capital, a French investment rope, and participation is rel- provincial cities. sic-Fit. After the sale of the firm that already moved into atively weak. Health City went into an in- French clubs, the remaining the fitness market last year. The Health City gyms are ternational expansion drive a Health City assets in Germany Health City’s French clubs to be integrated into Form few years ago, led by its two and Italy are said to be up for are premium facilities of Développement under the managers and sharehold- sale as well. about 1,500 square meters, management of its chief exec- ers, René Moos and Eric Wil- Ekkio Capital is an invest- yielding estimated sales of utive, Philippe Ducos. Michel borts. Health City ran up to ment firm specialised in small €12 million with 13,500 mem- Parada, former general man- 170 gyms in seven European and medium-sized compa- bers. Ekkio Capital previously ager of Health City in France, countries after its acquisition nies, with tourism and lei- acquired Form Développe- who previously attempted a of Fitness First clubs in the sure as one of its three focus ment, which has eight gyms management buy-out, has Benelux countries, and later sectors. Ducos also manages in other French cities. left the company. in France, Spain and Italy. Formrider, a group of inde- “The acquisition fits with Scéo predicted organic ex- However, the strategy ap- pendent French fitness clubs our project to build a group of pansion on the back of in- parently changed with the that share some service and premium fitness clubs around creased participation and an rise of Basic-Fit. The man- sourcing arrangements. France, so now we have Par- improved market structure. agement’s focus shifted more Neoness raises €25 million for growth

alvepar, a French in- “We raised €25 million to eight openings this year will vestment fund, has in- offer liquidity to our original include a club in Marseille in vested nearly €25 mil- shareholders and to reinforce the first half of this year. lion in Neoness, which our equity, which will help to Neoness was established Sruns 16 fitness clubs com- ramp up our development,” in 2007 by Teissier and bining affordable prices with said Marie-Anne Teissier, one Céline Wisselink, who wit- striking design and a convivial of the company’s two found- nessed the rise of low-cost g approach. On the back of the ers. gyms when she resided in transaction, Salvepar owns With the fresh funding se- the Netherlands. Salvepar the impetus of its manage- about 25% of Neoness, along cured, the company intends to is listed on Euronext Paris ment team. They have imple- with convertible bonds, while open eight clubs per year. It and controlled by the Tikehau mented original concepts such the majority of the group’s currently runs 12 clubs in Par- group. The investors said they as “Fitness is in the Air”, con- capital remains in the hands is and one each in Bordeaux, were impressed with the rapid sisting of outdoor workouts to of its two founders. Nantes, Lyon and Rouen. The development of Neoness under music streamed to earphones.

... Continued from page 1 achieve more differentiation ond concept, Injoy Station, Leading Operators ago, which supports prevention and continue to expand.” has been adopted by four Fitness in Germany in healthcare. After the latest opening in gyms so far. These clubs Gym chain Members Inline describes itself as the Frankfurt in November, Ele- mostly offer strength train- leading consultancy for the fit- ments has seven clubs in Ger- ing, on smaller surfaces but McFit 1,200,000 ness and wellness industry in many. They are often com- with equal focus on service Clever Fit 500,000 German-speaking countries, prehensive facilities, with and advice. with about 600 customers. swimming pools, saunas and Injoy comes fifth in the Fitness First 269,000 The services include personal many group classes on offer. ranking published earlier Kieser Training 238,000 coaching, professional training, With its 200 franchise clubs, this month by Edelhelfer, the marketing and management Injoy boasts about 200,000 specialised German consul- Injoy 200,000 concepts, turnaround manage- members, with an average age tancy, for the fitness chains Easyfitness 160,000 ment and more. of more than 40 years and pre- with the largest numbers of “The two companies share dominantly interested in fitness members in Germany. The Mrs. Sporty 154,000 the same values and they are for health purposes. About 150 ranking for 2015 is led by FitX 140,000 both active in the development of the clubs are in Germany and McFit and its 1.2 members, of a quality fitness market,” the others are spread between way ahead of Clever Fit with Pfitzenmeier Gruppe 112,000 says René Kalt, in charge of Austria, Switzerland and Bel- about 500,000 members. Fitness King 97,000 the fitness division at Migros gium. Underberg says there are Injoy comes after Fitness Zürich. “Together with Inline, no plans to expand the fran- First and Kieser Training, Source : Edelhelfer Analysis, numbers Migros can work the fitness chise to other countries. and ahead of Easyfitness and as reported by companies at the end of market even more efficiently, The German company’s sec- Mrs. Sporty. 2015, estimate for FitX FITNESS NEWS Europe 9 Gyms Paris gym chain targets European cities MG Sports Club has with standard membership ban gyms, to work out a har- gyms in Paris has soared started scouring the fees of €80 per month; four monized mix with One and from about 50 in 2008 to 150 C market to acquire small Waou clubs, with month- Waou concepts, focusing on last year, with the spread gym groups in European cit- ly memberships at €120, proximity and comfort,” says of low-cost gyms and other ies, and to replicate the strat- more comfort and personal- Hédin, the company’s former concepts. egy that reinforced its market ized services; and the Pure finance manager. “The company nearly had a leadership in Paris in the last flagship at €150 per month. monopoly in Paris and sud- three years. About half of the members European targets denly it had to deal with a The investment plans come join through 20% cheaper The European expansion smattering of cheaper alter- as the former Club Med Gym corporate packages. plans come after CMG Sports natives,” said a source close is finalizing a five-year stra- While full membership had Club’s majority sharehold- to the situation. “They ad- tegic overhaul for its 22 ser- been sagging over previous er started studying ways to justed the model while re- vice-oriented clubs around years, it increased again by capitalize on its investment. ducing the cost. It had to be the French capital. They about 3% to 64,000 members 21 Centrale Partners (21CP), done and it was done well, changed their name, ad- and the renewal rate for an- a French-Italian investment with pretty comfortable re- opted a new visual identity, nual memberships improved tweaked design, upgraded by three percentage points equipment, started working to 52 percent last year. The with digital services and re- French group’s turnover re- arranged schedules to make mained flat at €52 million for sure classes were harmonized the year until October. Hé- across the city. din says the operating profit Once the makeover is com- margin reaches an average of pleted later this year, CMG about 30% for the gyms and Sports Club will close in on 15% for the group, which in- its targets to implement a cludes 30 corporate gyms. similar strategy in other cities. “There are quite a few Integrated studios European cities with net- Hédin wants to lift the works of five, ten or fifteen number of members to clubs, that have not managed 68,000 in the existing clubs, to reinvent themselves, that but he acknowledges that may be struggling a bit be- further expansion will have tween the low-cost and the to come from more openings, upper end of the market. The starting with Paris. He is tar- idea is to buy them and then geting an average of two Par- apply the method that we’ll is openings per year, to reach have validated here,” says a network of about 30 clubs Franck Hédin, the company’s around the capital. chief executive. The program is start- The strategic plan mapped ing with an opening in the Franck Hédin, chief executive of CMG Sports Club, at the Cycle Club XIII in out for CMG Sports Club in Saint-Lazare district in the group’s gym on Place d’Italie. Paris has led to a clearer seg- March. The new One club will mentation of the clubs around cover about 3,000 square me- company, acquired about sults.” three concepts: The group ters, making it CMG Sports 85% of the shares in the for- Apart from its French clubs, boasts seventeen One clubs, Club’s largest, with integrat- mer Club Med Gym in 2008, 21CP has a majority stake in ed studios for indoor cycling in a deal that reportedly Silhouette, a Swiss chain of and boxing. This concept has valued the company at €74 20 gyms, which was bought Quick Read already been tested at anoth- million. The French tour- in 2011 with support from er club on Place d’Italie since ism company still has about Swiss Equity Capital Partners last year, which has a cy- 10% in CMG Sports Clubs and and is run independently. The n Targeting premium gym cling studio equipped for Les the remaining 5% are owned new owners opened two Pure chains of 5 to 15 clubs in Mills Immersive classes, and other European cities by the management. French gyms in Switzerland. The en- a Crossfit box. The launch newspapers reported in Sep- tire group reached sales of n Paris membership up by of standalone boutique clubs tember that 21CP had ap- €90 million and an operating 3% to 64,000 is scheduled for September, pointed advisers to search for profit of €15 million in 2014. n Turnover flat at €52 m probably starting with cy- buyers. Read the upcoming CMG n Two openings per year cling. The European expansion is Sports Club profile on fit- until 30 Paris gyms The ability to manage a to be based on CMG Sports nessnewseurope.com for mix of concepts in a diverse Club’s concepts, which have plenty more details on the n Standalone boutique city is precisely what Hédin been amply upgraded in the smart adjustments made by clubs to start this year wants to export. “The core of last years. Hédin says the Hédin’s team in program- n 21CP studying sale of our model is to operate in a company had to rethink its ming, fittings and equipment 85% stake big city with a network of ur- business as the number of in the group’s French clubs.

10 FITNESS NEWS Europe Gyms Women drive Austrian market growth en, with cardiovascular as well icant growth in the number of as strength training equipment, clubs,” he says. “Only the larg- suffered an average decrease of er chains will continue to grow, 3% in turnover per member, and while there is a downward trend their overall revenues slipped by for the clubs led by individual 0.4% for the year. owners.” Andreas Kreutzer, managing Fitinn remains by far the director at the consultancy, says largest Austrian chain with an that the growth in Austrian club estimated 105,000 members, members has chiefly come from but the study points to a rap- women and people aged more id rise in the number of clubs than 40 years. While the number targeting specific consumer of members was equally split groups. It implies that about one Fitinn. between men and women in quarter of Austrian fitness club he turnover of Austrian timated to have increased by 4% 2012, the latest numbers point members train at a club with a fitness clubs increased to 530,000, while the number of to a rate of 54% for women. specific target group or focusing by 3.2% to €228 million clubs inched up by 1% to 515 at The consultant adds that the on a specific form of exercise. last year, according to the end of the year. Austrian market is undergoing Kreutzer Fischer & Partner Tthe latest research by Kreutzer Kreutzer Fischer adds that increasing concentration. “We produces its study on Austrian Fischer & Partner, an Austrian the multi-activity clubs were think that the number of mem- fitness clubs once in every two consultant. It points to a slight worst affected by price compe- bers will continue to grow at years. Fitness, sports and leisure decrease in average prices, since tition in the Austrian market. about two to three percent per are among the company’s focus the number of members was es- These clubs for men and wom- year, but we don’t expect signif- sectors. Snap Fitness Pure Gym mulls over IPO licensee ure Gym, the lead- icant upside in ing British gym chain, the number of is studying a change members for targets 100 of ownership, which the former LA Pcould lead to an initial public Fitness clubs, Spanish clubs offering (IPO) with a poten- which are be- tial target valuation of more ing rebranded. lbert Marco says he than £500 million. Estimates has received more The company is said to of Pure Gym’s than 500 queries have appointed Rothschild to potential valu- from potential gym Aclub owners, after he ob- consider various options. An ation are part- IPO could be made easier by ly based on tained a master license for the earlier float of The Gym comparisons Snap Fitness in Spain last Group, which was valued at with The Gym year and opened his own club about £250 when it went pub- Group. The in Barcelona in September. lic in November. The majority chain reported The master licensee said he of Pure Gym’s capital is cur- in a trading was targeting about ten fran- rently in the hands of CCMP update this Pure Gym in Bristol. chises at the end of the year Capital Advisors, an Ameri- month that and about 100 in five years’ time. He added that the focus can private equity fund that it ended 2015 frills gyms that are per- may be on mid-sized Spanish invested in the British chain with 376,000 members, which manently open and allow cities, due to the much stron- three years ago. was an increase of 28.3% customers to pay for their ger competition in the larger Pure Gym reported EBITDA compared with the end of work-out without tying them cities. of about £22.6 million on a 2014. The rise was driven by to fixed contracts. It gener- The club opened by Mar- turnover of nearly £68.6 mil- the opening of 19 gyms, in- ated sales of £45.5 million co covers about 500 square lion in 2014, which was an including two gyms taken over in 2014, and group adjusted meters near the Barcelona crease of 49%. The business from another operator, which EBITDA of £14.7 million. Sants railway station and it expanded further last year raised the number to 74 clubs There was talk of a merg- has drawn about 500 mem- with the acquisition of 43 for- around the U.K. John Tre- er between The Gym Group bers so far. Marco has been in mer LA Fitness gyms. harne, the company’s chief and Pure Gym last year, but the Spanish fitness industry Headed by Humphrey Cob- executive, said in a statement that failed to materialise. for more than two decades, bold, former chief executive at that The Gym Group plans to Pure Gym’s moves to study working for Fitness First and Wiggle, the company boasted “continue to disrupt the mar- a potential change of owner- Anytime Fitness as well as 137 sites and 650,000 mem- ket and to deliver strong re- ship are said to be at an early Precor and several Catalan bers at the end of last year. turns” for its shareholders. stage. The company declined sports organisations. There should still be a signif- The Gym Group runs no- to comment. 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12 FITNESS NEWS Europe