David Lloyd Leisure, Europe's largest health and fitness group, has officially entered the Italian market by acquiring 10 clubs from Virgin Active. The acquisition, completed in early 2024, expands David Lloyd's presence to 10 countries and is part of a broader European growth strategy.
The deal includes clubs in major northern Italian cities and will be followed by a significant multi-million Euro investment program to upgrade the facilities to David Lloyd's premium standards. This move adds approximately 40,000 members to the company's portfolio.
Key Takeaways
- David Lloyd Leisure has acquired 10 health and fitness clubs in Italy from Virgin Active.
- This marks the company's first entry into the Italian market, expanding its operations to 10 countries.
- The acquired clubs are located in Milan, Turin, Brescia, and Genoa, adding around 40,000 members.
- A multi-million Euro investment is planned to refurbish the clubs and introduce David Lloyd's signature amenities and classes.
Strategic Expansion into a New European Market
David Lloyd Leisure has finalized a significant transaction to take ownership of 10 established health clubs in northern Italy. The clubs, formerly operated by Virgin Active, represent a major step in the company's ongoing European expansion plan. This is the first time David Lloyd will operate in Italy.
The acquisition increases the company's total portfolio to 134 clubs. The addition of the Italian locations means David Lloyd now operates in the United Kingdom, Ireland, Spain, the Netherlands, Belgium, France, Germany, Switzerland, Portugal, and Italy.
Glenn Earlam, Executive Chairman of David Lloyd Leisure, commented on the strategic importance of the move.
"This is a very exciting development for David Lloyd Leisure. Entering the Italian market has long been an ambition for us, and we are delighted to have acquired this fantastic portfolio of clubs," Earlam stated in a company announcement.
The deal not only expands the company's geographical footprint but also integrates a substantial new member base and an experienced local team.
Details of the Acquired Portfolio
The 10 clubs are situated in key urban areas in northern Italy, providing a strong foundation for the brand's launch in the country. The locations include:
- Seven clubs in and around the Milan metropolitan area.
- One club in Turin.
- One club in Brescia.
- One club in Genoa.
This geographic concentration allows for operational efficiency and strong brand presence in one of Italy's most economically active regions. The acquisition brings approximately 500 Virgin Active team members into the David Lloyd organization, ensuring continuity of service and local expertise.
Background on David Lloyd Leisure
Founded in 1982, David Lloyd Leisure has grown to become the leading health, fitness, and racquets group in Europe. The company is known for its premium, family-oriented clubs that offer a wide range of facilities beyond traditional gyms, including swimming pools, tennis courts, spa facilities, and dedicated children's areas. The company is owned by private equity firm TDR Capital.
A Multi-Million Euro Investment Plan
Following the acquisition, David Lloyd has committed to a substantial investment program to redevelop the newly acquired Italian clubs. The goal is to align the facilities with the company's premium brand standards and introduce its unique member offerings.
The refurbishment plan is expected to inject several million Euros into the properties over the next few years. This investment will focus on upgrading key areas and introducing signature David Lloyd concepts that have proven successful in other European markets.
By the Numbers: The Acquisition's Impact
- 10 new clubs added to the David Lloyd portfolio.
- 40,000 new members in Italy.
- 500 team members joining the company.
- 10 countries now part of David Lloyd's operations.
Earlam emphasized the company's commitment to enhancing the member experience. "We have a comprehensive investment plan to refurbish these clubs to our high standards, ensuring they become some of the finest health and wellness facilities in Italy," he said.
Upgrades and New Features
The planned upgrades will bring a host of new amenities and services to the Italian clubs. Members can expect to see the introduction of several of David Lloyd's signature features:
- State-of-the-Art Spa Facilities: The investment will focus on creating luxurious 'Spa Retreat' areas, offering a range of heat therapy rooms, hydro-pools, and relaxation zones.
- Enhanced Fitness Studios: The clubs will be equipped with David Lloyd's exclusive boutique-style workout classes, such as the high-intensity Blaze studio and the mind-and-body focused Rhythm class.
- Family-Oriented Amenities: A key part of the David Lloyd model is its focus on families. The renovations will include the development of DL Kids facilities, providing activities and spaces for younger members.
- Racquets Facilities: Where space allows, the company plans to upgrade or introduce its renowned racquets facilities, including tennis, padel, and pickleball courts.
This redevelopment strategy is designed to position the clubs at the premium end of the Italian fitness market, offering a comprehensive wellness experience that caters to individuals and families alike.
The European Health and Wellness Market
David Lloyd's entry into Italy reflects the growing strength and potential of the European health and wellness sector. The market has shown resilience and a continued trend towards premium and experience-led fitness offerings.
According to industry reports, consumers are increasingly willing to invest in comprehensive wellness memberships that offer more than just gym equipment. This includes access to spa services, specialized classes, and social spaces, all of which are central to the David Lloyd model.
The acquisition from Virgin Active provides David Lloyd with an immediate, established footprint, bypassing the challenges of building a brand from scratch in a new territory. It allows the company to leverage existing locations and a loyal member base while introducing its distinct brand identity and service level.
The move also underscores a broader trend of consolidation and strategic acquisitions within the European fitness industry, as major players seek to expand their reach and capture market share in key regions.
