Mumbai-based fitness chain company Talwalkars Better Value Fitness Ltd has entered the Sri Lankan market by acquiring a 49.5 per cent stake in Power World Gyms Ltd (PWG) for an undisclosed amount in cash.
PWG operates seven gyms in and around Colombo under the brand 'Power World’ and manages three in-house gyms for Sri Lankan companies. It claims to have about 8,100 members.
Sri Lanka's fitness industry is highly fragmented as only a few organised players cater to an estimated 1,00,000 gym members in the island nation.
PWG was launched in 1994 by Talavou Alailima, a former South Asian Games medalist and Sri Lankan record holder in shot put and discus throw.
Sparrow Advisory, a Gurgaon-based boutique corporate finance firm, acted as the exclusive advisor to the Sri Lankan firm and its owner on the transaction.
This is the first acquisition by Talwalkars in almost five years and the first outside India. The company, which went public in 2010, had made some small acquisitions in the local market in 2010-11, according to VCCEdge, the data research platform of VCCircle.
Talwalkars has 150 branches across 70 cities with more than 1,25,000 members. It offer services such as gyms, spas, aerobics and health counseling.
The company has a tie-up with UK-based fitness and health firm David Lloyd Leisure (DLL), which runs health clubs and gyms across Europe. Talwalkars David Lloyd Leisure Consulting provides consulting for leisure and sports clubs in high-end residential developments, gated community townships and corporate campuses. Talwalkars had said last year it was exploring ways to expand its alliance with DLL.