Ardent strengthens its gym business

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Ardent Leisure says its Goodlife Health Clubs business is now the country’s second largest club chain after the $61 million purchase of Fenix Fitness Clubs.

Fenix has eight clubs in Melbourne, two on Queensland’s Gold Coast, and plans to open a further two centres in Melbourne in the coming 12 months.

The purchase by Ardent Leisure, which also owns AMF bowling venues and the Dreamworld and White Water World theme parks in Queensland, will take its number of fitness centres to 63.

The Fenix deal will also add more than 35,700 members to its Goodlife business.

Less than three weeks ago Goodlife bought Fitness First’s five South Australian centres.

Fitness First is Australia’s largest fitness club chain, with more than 80 centres.

Goodlife chief executive Greg Oliver said the Fenix business was a good fit for Goodlife.

“Our operation processes and systems are similar and the move significantly strengthens our position in identified growth markets of Victoria and Queensland,” he said in a statement.

With $20 million in earnings in the year to June 30, Goodlife is Ardent Leisure’s largest business, and its fastest growing.

The Fenix deal is to be partly funded by a new $50 million capital raising venture in which Ardent plans to sell new shares.