April 30, 2019 N°79 Basic-Fit reinforcing Dutch FNE#79 You’re reading Fitness News leadership with Fitland buy Europe, the independent asic-Fit intends to rein- amounting to more than 30% - business news publication for executives in the international force its leadership of sic-Fit deal. fitness industry. With an the Dutch market with ness clubs acquired in the Ba- online portal and a bi-monthly Bthe agreed acquisition of ofMaarten Dutch clubvan members.Kempen, Fitland newsletter, Fitness News Europe Started near Nijmegen by- Hans van der Aar, chief fi provides reliable business news nancial officer at Basic-Fit, said and often exclusive analysis on fitness clubs owned by Fitland- hasZeeman, received a Dutch financial textile retailsup that the Fitland clubs reported- the fast-moving fitness market. Groep,lands. the third-largest fitness port in the last years from Jan positive EBITDA. “In any case Check out fitnessnewseurope. club operator in the Nether investor. we bought them for the po com for further information. magnate, and another affluent tential they have as Basic-Fit. reportedFitland salesruns in37 theDutch range clubs of Theyconcept,” are allsaid in Van white der spots Aar. and with over 56,000 members that will be very profitable with our CONTENTS two market leaders, Basic-Fit to purchase all of the Fitland Basic-Fit reinforcing Dutch €21and millionFit For lastFree, year. Fitland Unlike oper the- The buyer said it wanted leadership with Fitland p1-6 ates around the middle of the Orangetheory builds up - clubssold. Amenitiesand would such rebrand as swim most- European team .............p1-4 ship prices of up to €50 for larg- of them, while a few would be Core adds to multi-brand market with monthly member implement the full Basic-Fit strategy ...........................p2 - Photo: Fitland mingconcept, pools at will the be sameremoved price to Life Fitness heading for er clubs with swimming pools. rapid sale .........................p2 Basic-Fit is already the lead shares in Fitland Groep, which Puma doubles intensity in ing player in the Dutch market runsThey several own the Dutch majority hotels of and the points,Basic-Fit’s all probably managers by the have end fitness ..............................p3 with about 550,000 members- oflearned this year. to transform mid-mar- Lululemon to quadruple working out at 162 clubs in - abroad ..............................p3 the Netherlands. The com wellness centers. It previously Fitness First takes Barry’s bination would thus form a agreed to offload these facili- ket clubs intoContinued Basic-Fit, on pageas they 6.... to Germany and Austria . p4 group of nearly 200 clubs with have done with many of their ties to another party, including Retail investor builds more than 600,000 members, four hotels incorporating fit Swedish gym group ........p5 Orangetheory invests in Europe Pure Gym to spread small box format .......................p6 avid Long, chief exec- ers, treadmills, suspension accelerate the growth. ClassPass launches straps and heart-rate monitor- As Long explains, at least European blitz .................p7 D utive at Orangetheory that it surpassed sales of $1 Fitness, says that the ing announced earlier this year twoEuropean roving franchisees, employees andshould to Other news Europe,company with more has madedirect itin a- - getmake started sure thisthat year all toaspects support of Crunch Fitness (p7), Gymshark priorityvestments to topush reach its aconcept target inof billion with over 1,120 studios the concept are implemented (p3), Ken Group (p7), Lolë (p3), at least 200 studios in Europe at the end of 2018. Only a doz Reebok (p3), TrainMore (p7), UFC Gym (p7) properly. They are usually on by 2024. hand several weeks before and “The parent brand is really after club openings. Fitness News Europe is excitedin Paris, about to the the pointprospects where in The field staff will probably published by Zelus (France) major cities in Germany and be based in Germany, which is Editor: Barbara Smit a key target for Orangetheory [email protected] we might just end up doing a Photo: Orangetheory Fitness. A first German studio All rights reserved. [email protected] jointin Cologne venture earlier and putthis in month, some wasend oflaunched 2017, andin Lübeckanother byis ISNN: 2650-8702 of our own money,” Long said- en of them are in Europe so far, Jeannine Mickeleit around the ness is forming a team of Euro- which should secure more ex- The information published in this newsletter adding that Orangetheory Fit opening shortly in Hamburg, cannot be copied or distributed electronically Disclaimer: growth. butmore the potential franchise partners holder and has is without the publisher’s written permission. pean field staff to support the- beeninvesting holding in infrastructuretalks with many to posure. However,Continued Long on page says 4.... that Orangetheory Fitness is http://www.fitnessnewseurope.com/disclaimer/ The U.S. concept using row FITNESS NEWS Europe 1 Top Gear Core adds to multi-brand strategy ore Health & Fitness is targeting a Core has centralised all of its production turnover of up to $30 million for - - tional training gear was added a few years C ago. Ted Joiner, who ran the relevant cate inat athis manufacturing Chinese plant. unit The in groupVirginia. said It willlate weights, plates and dumbbells un goryHawkins at Throwdown, said that Core’s is joining sales Coreremained with lastfocus year on thatcustomisation about 50 jobs and would continue be cut to of commercialder the Throwdown strength and brand cardio after gear. five otherin the keyrange staff. of $150 million after an uptick years,Core to acquired complement licensing its multi-brand rights for sales the - operate as a distribution centre. ofand about Singapore, 2% last while year. Itthe came Chinese entirely market from Another change at the end of last year- Throwdownmonth, while brand the owners in the functionalcontinue to train sell Asia, with more sales in Japan, Malaysia was the departure of Justin Grosz, the- ing gear category, as reported earlier this group’s president and chief operating offi was hit by relative economic sluggishness. cer.replaced. The group said he was leaving to pur gloves, bags and apparel under the same Core’s turnover was flattish in Europe, sueAmong other theinterests, intended and growth he has drivers not been for brand. - “There’s the opportunity to scale it and terval training from StairMaster, and the put it into our eco-system that drives this year are a rower for high-intensity in- technology, innovation and distribution,” tion in this treadmill comes from the Hex- explains Tim Hawkins, vice president of- Free Runner from Star Trac. The innova global sales and marketing at Core Health &the Fitness, commercial which market. owns Star Trac and Stair Deck System, consisting of an aluminium Master, and sells Nautilus and Schwinn in running deck supported by proprietary hexagonal polymer suspension. Hawkins said that Throwdown chalked Hawkins said the Free Runner has been up sales of $3 million to $4 million with its Star Trac Free Runner Core Health & Fitness eagerly used in the facilities where it was- weights, plates and dumbbells, and most of- - installed for trials in San Francisco. “If you thattion thatwent is to disproportional just a handful toof its customers sales and in it ness. It saw strong demand in Poland, af- talk to runners, they say it feels like run the U.S. market. But the brand has recogni which makes up about 25% of the busi ning on a Mondo track,” he said. “There’s a - littlesuggests bit ofthat give the on thealuminum impact, makesbut there’s the appeared logical for Core to buy its way into ter the launch of a subsidiary became fully- a nice give-back on the return.” Hawkins this category with an established brand. operational last year. Along with its Euro “We’re selling half-racks that need weight pean office in the U.K., the group previous product more durable as well, because it- plates and we’re making dumbbell racks ly opened offices in Germany and in Spain, disperses heat away from the belt. that need dumbbells,” said Hawkins. “We where demand was weaker last year. Core has also been working with part were able to make a buy that got us a brand Throwdown should benefit from Core’s ners such as 4iii and Motosumo to inject straight away and instant recognition.” international distribution as well as its more digital technology into its products,- innovationThrowdown center. is situated Before in the Lake licensing Forest, manufacturing capacity in China. While as part of its OpenHub strategy. “We never- California, just down the road from Core’s- the production of Throwdown’s weights require a member or a club to first inter ering some products together. and plates is currently scattered between face with our software to enable an ex agreement, they had already started deliv the U.S. and several Asian sites, it should changeall sorts of of data,” applications, said Hawkins. without The imposing idea is around mixed martial arts, and the func- allBruno, be brought Core’s ownertogether and to chiefLand executive. America in to make Core’s products compatible with Throwdown Industries was formed Xiamen. The factory is owned by Michael Life Fitness heading forits rapidown systems. sale n impairment charge of - sales process,” said Dave Foul- pairment of $137.2 million re- tax was taken earlier levelkes, Brunswick’sof buyer interest chief execuin the- sale process.” The pre-tax im an operating profit margin A$137.2 million before tive, in a conference call with shrinking from 14.7% in 2015- - sulted in an adjusted net book toen justseveral 2.2% roundslast year. of special plier’s thisowner year is on preparing Life Fitness, for - value of about $500 million for The entity has already tak as the fitness equipment sup analyststinue to maintain last week.