Bridges Ventures has taken a controlling interest in Viva. It will work in partnership with Magenta Partners ("Magenta"), the investment firm that founded the business in 2011, who will remain actively involved as a minority shareholder.

This acquisition represents Bridges' first stand-alone European investment. However, it is in a sector that the firm knows very well, thanks to its previous experience with The Gym Group, a pioneer of the low-cost gym model in the UK. Bridges intends to accelerate Viva's roll-out through additional site openings over the next five years, with a focus on the major Spanish cities.

With its no-contract membership policy and low price point, Viva Gym has been able to open up gym membership to a new demographic: a third of its new joiners since inception had not been members of a gym before. And its offering - which combines cardio equipment, weights and instructor-led classes - has allowed it to attract men and women in equal numbers.The fragmented low-cost gym sector in Spain remains relatively small, accounting for just 5% of the overall gym market. But it is also the fastest-growing, with projected growth of 9% p.a. to 2020.

By applying its experience in the low-cost sector to this compelling opportunity, and by working closely with Magenta and Viva's management team, Bridges believes there is clear potential to create demonstrable social impact as well as substantial shareholder value. Philip Newborough, Managing Director and Co-Founder of Bridges Ventures, commented the transaction: "We're excited to make this investment in Viva - not just because it's our first investment in mainland Europe, but also because this is a great 'consumer champion' business in a sector that we know extremely well. We have seen with The Gym Group that this kind of business can achieve significant commercial success whilst also having a demonstrable social impact. We believe Viva is very well placed to do the same by tapping into the growing low-cost market in Spain."

Source: Bridges Ventures
Picture: Bridges Ventures