Baku:Kuala Lumpur Virgin Active, a prominent fitness and wellness brand, has announced its acquisition of Holmes Place Germany for 135 million euros in cash. This strategic move marks Virgin Active's entry into Europe's largest fitness market.
According to BERNAMA News Agency, the acquisition agreement was finalized on October 30. It involves a joint venture between Holmes Place Europe and funds managed by AUCTUS Capital Partners, with the completion and transfer of ownership anticipated by mid-December.
The acquisition includes 13 premium wellness clubs located in major German cities such as Berlin, Düsseldorf, Hamburg, Cologne, Essen, and Lübeck. On a pro forma basis, Holmes Place Germany is expected to contribute approximately 14 percent to Virgin Active Group's 2026 EBITDA.
Dean Kowarski, CEO of Virgin Active Group, expressed that entering the German market represents a significant milestone in the company's global expansion within the premium wellness segment. Virgin Active plans to introduce its Social Wellness Club model at the German locations, integrating fitness facilities with recovery areas, spas, and co-working spaces.
Doron Dickman, CEO of Holmes Place Germany, remarked that joining Virgin Active signifies the start of a new phase of development for the company's operations in Germany. The current management team will remain, and Virgin Active assured that there are no immediate changes planned for members or staff.
The acquisition is funded by existing cash reserves, following a rights issue to Virgin Active's shareholders in October. The company highlighted that purchasing an established, profitable business provides immediate scale at a lower cost than building a similar network from scratch.
Germany, with 12.4 million fitness club members, is witnessing a projected growth of 9.3 percent in its premium segment by 2028, as stated in the European Health and Fitness Report 2026. This acquisition follows Virgin Active's recent expansion efforts, including acquiring its first club in Lugano, Switzerland, and the anticipated opening of a club in Vienna, Austria, in early 2027.
Virgin Active currently operates 224 clubs across 10 countries, including Singapore and Thailand, and serves over one million members. The company also runs more than 260 healthy food restaurants worldwide.