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Gym Group acquires 13 sites from easyGym

Gym Group has purchased 13 locations from easyGym as part of its aim to reach 200 locations by 2020
Gym Group acquires 13 sites from easyGym

Gym Group (GYM) is sprinting ahead with its plans to operate 200 locations by 2020. It’s bought 13 sites from easyGym for an initial £20.6m, and will pay an additional £4.1m once lease extensions are agreed on two sites. The deal will mainly be funded by a £24m share placing, and the group will also take out an additional £10m of debt. This will bring the net debt /cash profit ratio to 1.2 times, compared with 1.34 times at the full year. Eight of the sites are in London, which will improve the group’s geographical mix.

IC TIP: Hold at 268p

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