Basic-Fit has acquired German franchise, Clever Fit, taking its estate to 2,150 clubs and making it Europe's biggest owner-operator of gyms by number of sites.

Clever Fit has 493 clubs and around one million members in seven countries – Germany, Austria, Switzerland, Slovenia, Romania, Croatia and Czech Republic. Most of the clubs – 454 – are franchised and 39 are company owned. In 2024, it reported an underlying EBITDA of €14.5 million. The deal extends Basic-Fit’s presence from six to 12 countries, with more than 2,150 clubs

By combining the capabilities, scale and entrepreneurial DNA of both companies, there are plans to rapidly accelerate the expansion of the franchise business and to explore the potential of a franchise model under the Basic-Fit brand in the key growth markets of France, Germany and Spain.

Basic-Fit CEO, Rene Moos, says this is a transformative step in accelerating growth: “Basic-Fit and Clever Fit are a great strategic fit, with a scalable concept and an entrepreneurial mindset.

“Clever Fit has shown strong growth figures on the back of a value-oriented concept similar to our own and today has around one million members in its club network. We look forward to strengthening our platform as Europe’s largest fitness franchise and to making fitness even more accessible to everyone.”

The guidance for 2025 remains unchanged and next year there will be a focus on optimising memberships and the profitability of new and existing clubs, as well as franchise integration. Total growth for 2025 will be 125 clubs and next year there are plans to open around 50 owned clubs.

A franchise concept under the Basic-Fit brand – which has been in the works for the last year – will also be explored

The transaction is expected to be completed by the end of the year and requires no regulatory approval. It was financed by a new bank loan, and terms involve €160 million cash, plus €15 million earnout.

The deal was for a 11-12 times value.

If the earnout criteria are not met, a further payment will be due.

Basic-Fit shares fell 3 per cent on the news, however, analysts believe Basic-Fit will shift its model to expand the franchising business.

With share prices being lower than desired, moving capex to franchisees increases the company's ability to buy back shares and also to de-leverage.