27 October 2017
NorthEdge Capital starred at this year’s North West Dealmakers Awards, picking up three awards including Young Dealmaker of the Year, Private Equity House of the Year, and Deal of the Year.Find out more
We approached NorthEdge to support the next growth phase as their admirable values and approach to business make them the ideal partner.
Chairman, Total Fitness
Total Fitness operates 17 fitness and leisure clubs across the North of England. With over 92,000 members and over 530 employees, it is the second largest health and fitness business in the North of England.
The business was established in 1993 and is headquartered in Wilmslow, Cheshire. Each Total Fitness club is specifically orientated to the regional preferences of its membership base, enjoys a strategic position in its locality and is well differentiated from low cost competition in the sector by its “full service proposition”. All clubs have a wide range of fitness equipment, fitness studios, steam rooms, saunas and three pools with an average footprint of 73,000 sq. ft.
NorthEdge was attracted to Total Fitness because of its full service, differentiated position in a growing sector. The business recently experienced a highly successful turnaround that delivered significant growth both in the membership base and in profitability. This has provided the business with a very strong platform from which to deliver further membership growth through its current gym portfolio and other associated opportunities.
Total Fitness has a very strong incumbent management team led by CEO Richard Millman and FD Andy Mellor. The team is supported by Warwick Ley as Non-Executive Chairman. Warwick is a Partner at RooGreen Ventures, a highly experienced private equity director who led the turnaround together with Brian Davidson. NorthEdge have also introduced David Hill who has joined the Board as a Non-Executive Director. David is a highly experienced leisure sector executive who will bring strategic challenge and entrepreneurial flair to the business.
The transaction has seen NorthEdge, RooGreen Ventures and the management team provide funding for continued investment in the equipment and facilities of the existing club estate, together with other new business opportunities.
Richard Millman, CEO at Total Fitness, said: “We are really excited, as a management team, to be working with NorthEdge as a new partner in the continuing success story that is Total Fitness Health Clubs. Ray and the wider team have taken the time to really understand our business and the management team and have gained a real understanding of the business’ fundamentals and the key drivers of our future growth. Total Fitness is in an extremely strong position, delivering an ambitious investment programme and continuing to see a rise in membership and growth in operating profit as a result. I look forward to working to realise our vision of being the dominant health club chain in the North of England. Everyone is tremendously excited about the further opportunities which are available in the coming years.”