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Pure Gym Fuels Expansion With LA Fitness Buyout

LA Fitness has been snapped up by Pure Gym in an acquisition worth between £70m and £80m, according to Sky sources.

The mid-market chain's 43 sites will be transferred to Pure Gym – a low-cost, newer rival – as long as the deal is approved by the Competitions and Markets Authority.

According to Pure Gym, which began with two sites in Leeds and Manchester in 2009, it will improve the availability of affordable fitness centres in London and the South East.

Most LA Fitness sites will be rebranded as Pure Gym under the deal.

The companies work on different models. Whereas LA Fitness members sign a fixed-term contract, Pure Gym customers are not tied-in and can pay on a month by month basis.

Humphrey Cobbold, chief executive of Pure Gym, said: "Overall demand for affordable, high quality and no-contract fitness centres is continuing to grow, served by a range of providers in a highly competitive marketplace."

Martin Long, the chief executive of LA Fitness, said he was confident that his company’s 123,000 members would benefit from the acquisition.

Over six years, Pure Gym has amassed 520,000 members – and Friday's deal means it will now have more than 130 sites, compared to 98 before.

The company is also planning to open 30 new Pure Gym sites by the end of this year.

In 2013, CCMP Capital Advisors purchased a majority stake in the business.