Malaga-based low-cost gym flexes it muscles and acquires its third chain this year, giving it a total of 200 centres

VivaGym, the Malaga-based low-cost gym chain, has taken over the 70 centres of its rival Altafit and as such taken a decisive step towards becoming the leader in the fitness sector in Spain. This is the third takeover by the company led by Juan del Río since last June, when the US private equity fund Providence Equity Partners took a majority stake in VivaGym and provided it with a multimillion-dollar injection aimed at accelerating its expansion and making it the number one in its sector.

Smartfit and Macrofit are the other two chains it has also taken over this year and it has taken over seven competitors since it was founded in 2011, including Fitness Hut in Portugal, Duet Fit in Catalonia and Happy Gym in the Balearic Islands.

The transaction announced on Tuesday 12 November includes the purchase of 70 gyms in operation throughout Spain and eight more in pre-sale. With this acquisition, VivaGym now has a total of 192 centres on the Spanish mainland, comprising 151 gyms in Spain and 41 in Portugal. If the 15 establishments in the pre-opening process are added, this brings the total to 207, with a total of 500,000 members. Industry sources put the cost of the acquisition at more than 150 million euros, the figure that adds up to the turnover of both companies, since VivaGym registered 94 million last year and Altafit, 55 million.

Altafit, like VivaGym, was in the hands of an investment fund: in its case, MCH. The integration of Altafit will provide the Malaga-based company with "an expanded and strategically located network" as well as a team of specialised professionals who will become part of VivaGym's workforce. "We have a very complementary network: Altafit has a strong presence in Pamplona, Albacete, Salamanca and Asturias, among other provinces where we are not; and has a large presence in Madrid and Galicia, where we have few centres," says Juan del Río, who explained that in the province of Malaga there are no overlaps either, as Altafit is in Vélez-Málaga, Fuengirola and Estepona, "where we are not", but is not VivaGym has two centres in Malaga city.

The head of the chain highlighted other reasons that justify the operation: "There are many similarities in the value proposition of both chains. For example, Altafit also has group classes as a central element, something that not all operators have. In addition, we share a strong commercial orientation". In short, Del Río says that the operation "allows the creation of a wide network of gyms, which enjoy a high territorial complementarity and similar philosophies".

Juan del Río explained that the Altafit brand will disappear and its gyms will be progressively reformed to adapt them to Vivagym's standards. "Given the number of gyms and the fact that we have to do it without closing them all at the same time, the integration may take a year," he explained. He went on to say, "We are going to cover four dimensions: governance and support from the head office, gym management, commercial strategy (which also encompasses the brand) and technology."

With this operation, VivaGym gains presence in 30 of the 50 Spanish provinces and brings its proposal closer to more than 14 million people in Spain. This brings it closer to the "dream" of reaching one million members. "The incorporation of Altafit marks a key moment in our growth strategy," said Del Río. "With Altafit we strengthen our ability to offer access to affordable, quality fitness in all major markets in Spain. We are delighted to welcome the AltaFit team to VivaGym and to continue working towards our goal of democratising access to fitness in Spain and Portugal."