World Gym Taiwan buys World Gym International
台灣World Gym 收購 國際World Gym
| World Gym Taiwan obtains 271 international gyms in 10 countries for NT$288 million
TAIPEI (Taiwan News) — World Gym Taiwan announced on Monday (Oct. 28) that it has acquired its parent company, World Gym International (WGI). According to a statement on its website, World Gym Taiwan confirmed it completed the acquisition of US-based WGI for US$9 million (NT$288 million). The acquisition grants the company global operating rights of the World Gym brand, as well as immediate access to franchise royalties from its 271 international locations. World Gym Taiwan CEO John Caraccio said the acquisition is expected to boost revenue and net profit, with projected annual franchise fees ranging from US$3.5 to US$4 million and a 50% operating profit margin. The deal was valued at seven times earnings. Currently, WGI has franchise partners in 10 countries, including Australia, the US, Canada, Mexico, and Brazil. Taiwan has 130 branches and 450,000 members, with 15 to 20 new branches opening annually. New franchise agreements are being negotiated in additional markets. The company plans to add 30–50 locations each year over the next two years, eventually accelerating growth to 100 new locations annually through franchise expansion. Caraccio said the acquisition is likely to boost investor confidence in World Gym, increasing its market value. Looking ahead, the company aims to operate 500 direct-run gyms, including 250 in Taiwan. New gyms will be opened in areas with populations over 60,000 and suitable commercial zones. The company also plans to pursue merger and acquisition opportunities, with a target of more than 2,000 franchise locations worldwide. |
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| Keoni Everington, Taiwan News, Staff Writer | |
| 2024-10-29 |
