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- Viva Leisure (VVA) has acquired eight Rebalance pilates and yoga studios across Australia and the Master Franchisor of the business
- Rebalance began as one studio in 2013 and grew to 11 locations under a franchise arrangement, with Viva acquiring eight of the locations with the remaining three locations in the process of de-franchising
- Viva says this will allow it to re-establish the franchising systems and grow the brand as it will own all locations
- The company explains it has opened or acquired a new location every nine days since listing, making the business one of the most unique and fastest growing health club groups in the world
- Viva Leisure shares have been trading up 1.3 per cent, trading at $2.33
Viva Leisure (VVA) has acquired eight Rebalance pilates and yoga studios across Australia and the Master Franchisor of the business.
Rebalance began as one studio in 2013 and grew to 11 locations under a franchise arrangement, with Viva acquiring eight of the locations with the remaining three locations in the process of de-franchising.
The company says this will allow it to re-establish the franchising systems and grow the brand as it will own all locations.
The acquisition was funded using 50 per cent debt and 50 per cent equity from cash reserves. VVA said the deal is complementary to the existing GroundUp strategy by targeting a slightly lower cost offering of around $40-$45 per week, exclusively for pilates and yoga.
Viva said it expects its next round of growth to be fuelled by boutiques which now represent 26 per cent (34 locations) of the portfolio.
The boutique portfolio comprises the hiit republic (22), GroundUp (1), Rebalance (8), Psycle Life (2) and Studio by Club lime (1).
The Studio by Club Lime in the Australian Capital Territory (ACT) is currently being reconfigured as a Rebalance studio and is expected to open in early January 2022.
Viva Leisure CEO and managing director, Harry Konstantinou said the company now has 130 corporate owned locations, an increase of 101 locations since listing on the ASX in 2019.
“The Rebalance brand is a well-respected offering throughout its target markets in Queensland and with Viva’s backing will continue its expansion and presence in other States and Territories,” he said.
The company explains it has opened or acquired a new location every nine days since listing, including the periods during COVID lockdowns, making the business one of the most unique and fastest growing health club groups in the world.
“The expansion of Viva’s wellness and boutique portfolio of offerings and the increase in locations creates a great springboard into 2022.”
Viva Leisure shares are up 1.3 per cent, trading at $2.33 at 3:33 pm AEDT.
