Morphosis Capital acquires majority stake in RO gym chain
Morphosis Capital Fund I, a private equity fund focused on Romanian SMEs, acquired a majority stake in Stay Fit Gym, which currently operates seven fitness centers in Bucharest.
The value of the investment in Stay Fit Gym is within the usual range of EUR 5-10 million invested by Morphosis Capital, the fund said.
The capital infusion from the private equity fund will contribute to the expansion of Stay Fit Gym in Bucharest and Romanian cities with a population of over 100,000 inhabitants, through the opening of new fitness centers, and through the acquisition of independent operators.
The deal with Stay Fit Gym marks the third transaction closed by Morphosis Capital in the last six months, after taking over stakes in Cronos Med (aesthetics and plastic surgery) and EMI (production).
Stay Fit Gym was established in 2012 by three Romanian entrepreneurs: Alexandru Lascar (CEO), Marius Preodisteanu (Head of Expansion), and Laurentiu Lascar (COO) (pictured). It reported a turnover of RON 7.9 million in 2019, and RON 7.1 million in 2020, a difficult year for fitness industry operators because of the pandemic-related restrictions.
"According to market studies, the fitness sector in Romania has a significant potential for development compared to the other countries in Central and Eastern Europe. Currently, the Romanian fitness market has an estimated value of EUR 250 million, while it is estimated at over EUR 1 billion in Poland, a comparable CEE economy. Therefore, to tap this potential, we want Stay Fit Gym to penetrate cities, residential areas and office buildings, which currently show large demand for fitness activity. I am convinced that together we have all the ingredients to expand nationally, targeting the opening of 25 to 30 Stay Fit Gym new fitness centers across Romania," Andrei Gemeneanu, managing partner at Morphosis Capital, said.
"We are delighted about our partnership with Morphosis Capital since together we have an opportunity to grow rapidly at a national level by opening new fitness centers in locations where there is a high need for our services and a promising customer base. We rely on the fact that the Romanian fitness market will double in the coming years, and thus, through our fitness centers, we want to become a reference point in adopting a healthy lifestyle," Alexandru Lascar, CEO of Stay Fit Gym, said.
Morphosis Capital currently holds stakes in DocProcess, Medima Health, Dr. Leahu Dental Clinics, EMI, and Cronos Med. The private equity fund, with EUR 50 million committed capital, was established in December 2018 by Romanian entrepreneurs Simona Gemeneanu, Gabriela Dumitru, Dragos Petre, and Andrei Gemeneanu.
(Photo courtesy of the company)