Information on the target
Morphosis Capital, a prominent private equity firm in Central and Eastern Europe, has announced the signing of an agreement to sell its stake in Stay Fit Gym. This transaction marks a significant milestone as Stay Fit Gym merges with 18GYM, a well-established Romanian fitness chain backed by Enterprise Investors, one of the largest private equity firms in the region. The deal is subject to regulatory approvals and customary closing conditions, with expectations of delivering a net multiple on invested capital of up to 4.6x and an internal rate of return exceeding 40% for Morphosis Capital Fund I.
This transaction concludes a transformative five-year value-creation program that has elevated Stay Fit Gym from a seven-club operator in Bucharest to a robust network of 77 clubs. Projections for 2026 indicate that revenue and EBITDA will be approximately 20 times higher than when Morphosis Capital made its initial investment.
Industry overview in the target’s specific country
The Gyms, Fitness, and Spa Centers industry in Romania has experienced significant growth in recent years, driven by increasing health awareness and a rising middle class. The demand for fitness services has surged as more Romanians prioritize health and wellness, leading to a proliferation of gyms and fitness centers across urban areas. This trend is further supported by the growing popularity of group fitness classes, personal training, and wellness services, which have become integral to the fitness offerings in the country.
Romania's fitness market is characterized by a diverse range of operators, from boutique studios to large gym chains. The competitive landscape has intensified, with established players and new entrants vying for market share. This has prompted many fitness centers to innovate their service offerings, incorporating technology and personalized fitness solutions to enhance customer experience and retention. The rise of digital fitness platforms has also influenced traditional gyms, pushing them to adapt and integrate technology into their operations.
Moreover, the COVID-19 pandemic has reshaped the industry, with many gyms forced to close temporarily. However, the subsequent reopening has led to a renewed focus on hygiene and safety protocols, which have become critical in attracting members back. The industry is now witnessing a robust recovery, with many gyms reporting increased membership numbers and a growing interest in fitness and wellness services. This recovery presents a favorable environment for investment and expansion within the sector.
As the industry continues to evolve, there is a clear opportunity for consolidation among fitness operators. Mergers and acquisitions are becoming more common as companies seek to enhance their market position and oper…