DLL moves into The Netherlands with Cannons acquisition

David Lloyd Leisure has acquired five health and fitness clubs in The Netherlands from Cannons Health Clubs.

The deal, worth 31m euros, completed on 31 December and is DLL’s first move into the Benelux region.

The company has taken over Cannons Health & Fitness BV – part of UK-based Cannons Group – which operates the five leasehold clubs – in Veldhoven, Dordrecht, Utrecht and two in Rotterdam – and has two further sites – in Amsterdam and Rotterdam – under construction and due to open by the end of 2004.

DLL managing director, Stewart Miller, said the acquisition was an important strategic step for the brand.

“We have identified two territories, Spain and the Benelux region, where market conditions and demographics are particularly well suited for the DLL club model,” he said.

“With the acquisition of the clubs in The Netherlands, we have now secured footholds in both markets. We have signed up strong local partners and we have done all this without major capital investment.”

The company has already agreed to purchase one site in Barcelona and is currently seeking further opportunities there. It also plans to open a club in Brussels later this year.

Miller stressed, however, that the UK remains DLL’s primary focus for development of the brand.

Cannons chief executive, Harm Tegelaars, said the sale to DLL was part of the group's strategic move to focus investment on the UK market.

"This deal gives us the opportunity to concentrate on the UK market, which has experienced a difficult trading climate in 2003," he said.

"I feel that we are now well placed to take advantage of the growing health and fitness demand in the UK for 2004."

Cannons opened eight new clubs in the UK in the last four months of 2003 and is due to open a further club at Reading Green Park early this year.