Target Information

As of August 2023, BestFit Group operates 106 fitness studios, having successfully acquired all 11 locations of the premium value chain Fivestar Fitness. This acquisition allows BestFit Group to meet its expansion target of 100 fitness studios for the year ahead of schedule. With over 350,000 members, BestFit Group continues to solidify its status as the fastest-growing fitness chain in Germany.

Currently, BestFit Group comprises 95 studios, more than 300,000 members, and approximately 1,400 employees, positioning it among the top fitness operators in Germany. BestFit Group strategically operates within the rapidly expanding premium value segment through its established brands, Ai Fitness and jumpers fitness.

Industry Overview

The German fitness industry has experienced notable growth in recent years, particularly in the premium value segment, which focuses on offering high-quality fitness experiences at reasonable prices. This demand has intensified as health-conscious consumers seek integrated fitness solutions that cater to their lifestyle.

The impact of the COVID-19 pandemic significantly affected the fitness sector globally; however, the post-pandemic recovery has seen a resurgence in gym memberships and a renewed interest in fitness. The trend towards a premium experience has been a large driver of growth in this segment, with consumers increasingly willing to invest in fitness services that provide added value.

In Germany, the outlook for the fitness market remains robust, with expectations of continued growth over the coming years. This growth is fueled by an increasing awareness of health and wellness, combined with a shift toward more flexible and higher-quality fitness offerings. As market players adapt to these evolving consumer preferences, opportunities for expansion through strategic acquisitions are likely to emerge.

Rationale Behind the Deal

The acquisition of Fivestar Fitness aligns perfectly with BestFit Group’s expansion strategy, allowing the company to capitalize on Fivestar's established market presence and loyal customer base of around 50,000 members. Stephan Schulan, CEO and shareholder of BestFit Group, stated that the acquisition integrates well with the company’s growth objectives.

This merger will not only enhance BestFit Group’s footprint in key regions but also strengthen its competitive edge in the premium value fitness segment. By absorbing and rebranding the Fivestar locations under the Ai Fitness brand, BestFit Group is strategically positioning itself for further success.

Investor Information

The investor behind BestFit Group is NORD Holding, a private equity firm based in Hannover, known for its focus on supporting growth-driven companies. Since its involvement in the partnership, NORD Holding has significantly contributed to the ambitious expansion trajectory of BestFit Group within the German-speaking region.

NORD Holding follows a strategic investment philosophy, aiming to empower firms through operational excellence and market positioning. The successful execution of this deal exemplifies their commitment to fostering growth within the fitness industry while capitalizing on market consolidation opportunities.

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In expert opinion, the acquisition of Fivestar Fitness by BestFit Group represents a strong investment move, given the latter's established presence in the premium fitness sector and solid operational performance. The integration of an established brand with a solid member base will likely enhance profitability and accelerate growth.

The timing of this acquisition is particularly advantageous as the fitness industry's post-pandemic recovery continues. With a booming interest in fitness, particularly in premium offerings, BestFit Group is strategically positioned to leverage this momentum effectively.

Moreover, with NORD Holding’s backing, BestFit Group has the necessary resources and strategic insight required to navigate the competitive landscape. This partnership enhances the potential for ongoing growth and expansion in both existing and new markets.

Overall, this acquisition is viewed positively, as it not only supports BestFit Group's ambitious growth ambitions but also further cements its competitive position in an increasingly attractive market segment.

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