The whole fitness sector could be in line for increase in investor interest if the rumoured F45 float goes ahead
F45 Flying High
According to recent reports the F45 Training company was acquired by Crescent Acquisition Corp, which is a publicly traded special purpose vehicle used for stock market entry for companies it buys, read here.
The F45 franchise has almost 2,000 franchisees across +50 countries worldwide, the current executive team is expected to remain in place. The prospects for the franchising business are looking good with a pipeline of territories sold, combined with a new post-COVID interest in keeping fit as a means of keeping healthy.
The market place looks hungry for more of these types of services and wants them on the high street. The retail square footage that is now becoming available could benefit the fleet footed operators who move quickly and can offer a defined product.
Fitness Sector Floats
There have been prior floatations from the sector, the most recent being Planet Fitness in 2018 and the one year returns are at ~3.5%, which considering the pandemic is pretty good.
The Gym Group floated on the LSE in 2015 and the one year return is an astonishing ~89%. This sort of activity helps build confidence across the industry in general and can help with attracting investment to the sector.
Our own investments in Digme Fitness and franchise YourZone45 benefit indirectly from any positive news from the Stock Exchange of either side of the Atlantic.
Outlook
The forecast for the health, fitness and wellness sector is looking good, with a recovery bounce in membership numbers being reported anecdotally by various big fitness chains. We are expecting some decent results across our health and fitness investments.
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