Deal profile | Gadens advises Viva Leisure on strategic acquisition of WA health clubs and associated capital raise

Gadens has advised Viva Leisure Limited (ASX: VVA) on its strategic acquisition of 5 health clubs in Western Australia and its associated fully underwritten institutional placement raising a total of $16 million. Unified Capital Partners acted as sole lead manager, bookrunner and underwriter for the placement.

The acquisition will see the launch of Viva Leisure’s Club Lime brand in the Western Australia market, adding 5 locations to Viva Leisure’s existing portfolio in Western Australia. The acquisition is expected to add approximately 10,000 members to Viva Leisure’s membership base.

The acquisition is to be funded through proceeds raised under the placement which are also being used to support other acquisitions.

This placement marks a significant milestone for VVA, enabling the company to finance its strategic expansion into Western Australia, the reimbursement of recent CAPEX, rebranding, working capital, offer costs and other strategic initiatives. Additionally, this raise bolsters Viva Leisure’s financial position and reinforces its commitment to growth and innovation.

Gadens has a longstanding relationship with Viva Leisure, supporting its strategic expansion across Australia. This includes the recent acquisition of iFitness 24/7 by Viva Leisure, which elevated Viva Leisure’s portfolio to 173 locations nationwide.

Commenting on the capital raise, lead partner Jeremy Smith said:

“We are delighted to have again advised the Viva Leasure team to get this deal completed alongside their recent acquisitions. We’re excited about what the next 12 months has in store for the company.”

Harry Konstantinou, CEO and Managing Director of Viva Leisure Limited said:

“The success of this capital raise is a testament to the market’s confidence in our growth strategy and future prospects. These strategic acquisitions not only enhance our national footprint but also provide significant opportunities for further growth and value creation.”

Practice groups: Corporate

Value: $16m placement.

Key team members: Gadens partner Jeremy Smith led on the acquisition team with partner Jol Rogers advising on the ECM workstream. The team was also supported by senior associates Gary Lim and Robert Wilson and lawyer Daphne Chiang.