LONDON (ShareCast) - (ShareCast News) - The Gym Group has bought 18 gyms from Lifestyle Fitness for £20.5m in cash.
The new sites, which are mainly in the Midlands and North of England, will transfer as going concerns including the existing membership. Ten of the sites will be converted to The Gym brand immediately following assignment of the leases. These will be converted by the end of the first quarter of next year.

Meanwhile, a further eight sites will continue to operate under the Lifestyle Fitness brand and will be considered for conversion to The Gym brand in due course.

The acquisition is expected to be "significantly" earnings-enhancing by 2019 as a result of the expected growth in membership of the acquired sites.

Chief executive officer John Treharne said: "Lifestyle is an excellent and complementary fit with our existing estate. These are well invested gyms in strong locations with an established membership. The acquisition strengthens The Gym Group's position in the Midlands and North in areas where we are currently underrepresented and accelerates our expansion plan. The addition of these gyms is anticipated to be significantly earnings enhancing by 2019."

At 0915 BST, the shares were up 7.1% to 216.10p.

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