With the acquisition, the gym chain plans to open 65 more studios in the coming months.
A Smart Fitthe third largest gym chain in the world, announced the acquisition of the Velocity studio chain for R$183 million. The deal includes all 82 units of the Velocity and Kore brands, the latter focused on functional training. Of the total amount, R$163 million will be paid at the closing of the transaction, while another R$20 million will be disbursed later, according to established goals.
The acquisition of Velocity complements Smart Fit’s portfolio, which already includes studios such as Race Bootcamp, Vidya, Jab House, Tonus Gym and One Pilates. Diogo Corona, COO of Smart Fit, highlighted that the acquisition fills a gap in the company’s portfolio, strengthening its leadership in the premium fitness studio sector in Brazil.
“Velocity is the most successful indoor bike studio company in the country and exactly the modality that was missing from our portfolio”, says Smart Fit’s COO.
In the first quarter, Smart Fit reported revenue of R$1.3 billion, an increase of 28% year-over-year, with 1,469 locations in 15 countries. The acquisition of Velocity significantly expands Smart Fit’s studio footprint, which currently has 56 studios in Brazil and two in Portugal, where two more will open in the second half of the year.
Velocity, founded in 2014 by Shane Young and Declan Sherman, has become synonymous with indoor cycling in Brazil. With experience in the financial market, Young was inspired by New York spinning studios to create an integrated practice of physical and mental well-being for the Brazilian public. Since 2018, Velocity has expanded its business model through franchises, with class packages ranging from R$285 to R$2,730 and individual classes costing between R$52 and R$60, depending on the region.
“We know we’re still a long way from where we want to be, and we’re confident that this new partnership will give us the resources and tools we need to continue on our path to revolutionizing the world of physical activity,” said Shane Young, CEO of Velocity.
Smart Fit plans to follow the model of leading companies in the studio sector, with growth focused on opening stores in partnership with franchisees. The company plans to open 65 more studios in the coming months, mostly in the franchise format, further consolidating its position in the fitness market.
*With information from EXAME
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