Private equity firms checking out Pure Gym after company proved not quite fit enough for IPO market
Private equity firms are believed to have expressed interest in Pure Gym after the company withdrew its flotation plans this week.
And the company’s board and US private equity backer, CCMP Capital, are understood not to have dismissed the informal approaches.
Read more: Pure Gym avoids overstretch as it pulls the plug on IPO plans
Pure Gym, which was founded in 2008 and acquired by CCMP in 2013, was aiming to raise £190m from the float, which was announced in mid-September.
But the company pulled its plans on Tuesday, citing “challenging IPO market conditions”.
Read more: Fitness chain Pure Gym in good health as turnover hits £99.5m
It was followed a couple of days later by TI Fluid Systems, while Biffa was forced to cut the price of its IPO in order to force it through.
After the Pure Gym announcement, AJ Bell investment director Russ Mould commented: “Potential investors clearly weren’t pumped about the group’s prospects if the UK economy takes a Brexit-induced hit.”