Basic-Fit Increased competition in Belgium

One month after VivaGym (Number 3) acquired Altafit (Number 4) in Spain for EUR 155.0m, there is now additional competition coming in the Belgian market. Jims (number 3) acquires NRG (number 2). Jims had 40 clubs (BE+Lux) and NRG 42. Jims is part of the Colruyt group (COLR BB) The name NRG will cease to exist and a rebranding of the clubs is in order. The acquisition price is unknown. With 228 clubs (YE 2024E KBCS) and 660k members (KBCS Estimate) in total, Basic-Fit remains the market leader in Belgium but competition is on the rise. Jims is more expensive than BFIT, with the cheapest subscription starting at EUR 29.99 (vs. BFIT EUR 24.99) and most expensive at EUR 49.99 (vs. BFIT EUR 29.99). This is negative news for Basic-Fit as the Colruyt Group has significant fire power to further grow the business. Competition (often PE backed) and consolidation is on the rise in the sector with a negative impact on BFIT's investment case. Still, BFIT remains a much stronger brand in the Belgian market than Jims.