The Smart Fit gym group announced on Tuesday (2) the purchase of control of a competitor in Brasilia, Evolve Participações em Sociedades SA, owner of 28 of its own units. The contract to subscribe for new ordinary shares representing at least 60% of the total share capital of Evolve is based on their stated value of R$ 199.7 million (including debt and available cash).
In a statement to the market, Smart Fit said that the acquisition “is in line with its expansion strategy and strengthens its presence in the central western region, by adding gyms located in strategic commercial locations.” Evolving has seven units under construction.
This initiative represents a shift in direction for the group, which owns the popular Smart Fit bodybuilding gym chain, whose monthly fees are around R$120, and the premium Bio Ritmo gym chain, where monthly fees reach R$550. So far, the group has grown mainly organically: in the past five years, it has doubled in size, going from 865 units in the third quarter of 2020 to 1,867 gyms at the end of September this year.
During this period, the number of customers increased from 2.8 million to 5.2 million.
“Our organic expansion thesis still stands. But we are always interested in players who have units in strategic locations, and I believe there are new opportunities on the horizon,” he said. Bound Diogo Corona, Chief Operating Officer of Smart Fit Group.
To date, the group has only made two relevant acquisitions: Just Fit, in 2021, owner of 23 units; and Velocity Cycling Studio, in 2024, operating on a franchise model, which currently has 82 units.
According to Corona, talks with Evolve began about two years ago. “We are mainly buying points in strategic locations,” which should sustain the brand in the coming years, he said.
In the negotiations announced on Tuesday, the total value of the new shares to be subscribed by Smart Fit will correspond to up to R$100 million, of which R$40 million will be paid on the closing date of the deal and the remaining amount will be settled within two years, adjusted for inflation, depending on the fulfillment of certain conditions in the contract.
“The enterprise value of the deal is R$199.7 million and Smart Fit’s ultimate participation is subject to the determination of the final net debt on the date of closing of the deal. On the date of closing of the deal, the Evolve shareholders’ agreement will be signed, which regulates, among other things, corporate governance and the grant of call and put options that will allow Smart Fit to acquire all shares issued by Evolve and held by minority shareholders,” the statement said on Tuesday.
Completion of the deal also depends on the approval of CADE (Administrative Council for Economic Defense).
Founded in 1996 by Edgard Corona, the company is a leader in the Latin American fitness sector in terms of number of clients and gyms. It is present in 15 countries in Latin America and Morocco. On the continent, in addition to Brazil, it has its own operations in Mexico, Colombia, Chile, Peru, Panama, Costa Rica, Argentina, Paraguay and Uruguay. It also has franchises in Brazil, Mexico, Colombia, Dominican Republic, El Salvador, Ecuador, Guatemala and Honduras.
In addition to Smart Fit and Bio Ritmo, the group owns Nation CT (a network for high-performance athletes), the studio brands Race Bootcamp, Vidya Studio, Tonus Gym, One Pilates, Jab House, Kore and Velocity, as well as the aggregator Total Pass and the digital product Queima Diária. In 2024, it recorded net revenues of R$5.58 billion. The year should end with the opening of 360 units.
SMART FIT X-ray kit
institution: 1996
Thirst: Sao Paulo
presence: 1867 units in all states of the country, the Federal District and 15 other countries
employees: 20 thousand
Main competitors: BodyTech, Blue Fit, Formula, Cia Athletica and regional networks
Net revenues 2024: 5.58 billion Brazilian reals