Houlihan Lokey Advises LifeFit Group

Houlihan Lokey is pleased to announce that LifeFit Group has signed an agreement to be acquired by investment funds advised by Waterland Private Equity Investments (Waterland). Houlihan Lokey served as the sole sellside advisor to LifeFit Group and its majority owner, funds managed by Oaktree Capital Management (Oaktree).

LifeFit Group is a leading health and fitness platform in Germany, uniting several fitness brands under one roof. Fitness First is LifeFit Group’s best-known and largest brand. With Fitness First BLACK, the gym chain offers upscale benefits and services, while Fitness First RED offers a special workout space concept for a wide range of customers with appealing modular pricing. Elbgym complements the multi-brand offering as an exclusive performance training provider with its unique and strong community. The fitness concepts of Barry’s, the pioneer of indoor high-intensity interval training, The Gym Society, the innovative compact studio concept from the Netherlands, as well as the Club Pilates brand and YogaSix from Xponential Fitness complete the LifeFit Group portfolio. Since 2019, LifeFit Group‘s club portfolio has grown from approximately 50 clubs to more than 140 clubs in 2024, making it one of the leading health and fitness platforms in Germany.

The European investment company Waterland was founded in 1999, operates 13 offices in 11 countries, and possesses extensive experience in the health and fitness industry. From 2005 to 2013, Waterland invested in the Dutch Health City/Basic-Fit Group and developed it into the second-largest fitness center operator in Europe. In addition, Waterland had a major stake in the Exercite Group (Hansefit), which developed into one of the largest corporate health and wellness benefit solutions providers in Germany and the Netherlands prior to its sale to the Epassi Group in February 2024. Waterland is still invested in the German gym chain FIT/One.

Waterland believes there is significant potential for growth in the fragmented European fitness market. The acquisition of LifeFit Group and subsequent expansion through targeted acquisitions aim to enable the LifeFit Group to become one of the leading health and fitness platforms in the region. Thanks to Waterland’s extensive expertise and financial resources, LifeFit Group believes it is well positioned to accelerate its positive development and further strengthen its brands.

The existing management team around CEO Martin Seibold will continue to lead the business of LifeFit Group and operate independently. Waterland sees itself as a partner advising the management on the strategic set up. Mr. Seibold is enthusiastic about the acquisition: “We are delighted to have such a competent and experienced investor as Waterland on board. With their expertise and financial support, we are absolutely certain that we will be able to continue along our chosen path. We will further strengthen our position in the market and expand our business.” Jörg Dreisow, Supervisory Board Member at Waterland, also commented on the acquisition: “We are convinced of the quality and potential of LifeFit Group and look forward to working with the management team on the future of the business. We are confident that our resources and commitment will further accelerate the growth of LifeFit Group.”

Federico Alvarez-Demalde, a Managing Director at Oaktree, commented: “Oaktree has been a supportive partner to LifeFit Group for over a decade, proudly contributing to its growth over that time. Since our collaboration with the management team began in 2017, the number of LifeFit Group sites has more than doubled, revenue has tripled, and their service offerings have significantly grown, enabling them to reach a wider audience in the pursuit of health and fitness. We extend our congratulations on this achievement and wish the business and its new shareholders all the best in the future.”

Houlihan Lokey served as the sole sellside advisor to LifeFit Group and its majority owner, funds managed by Oaktree, and assisted in marketing, structuring, and negotiating the transaction as well as performing lender education on behalf of the shareholders. This deal is expected to be completed during the second half of 2024.