Sources inform ''Globes'' that Health and Fitness Ltd., which owns the fitness chains Holmes Place Israel and Shape, posted NIS 133 million revenue in the first half of 2007, 28% more than the NIS 104 million posted in the first half of 2006.
70% of revenue, NIS 93 million, came from Health and Fitness’s domestic activity and the rest from its international business. Part of the growth in domestic business came from the acquisition of an Ashdod fitness center, which was rebranded as Holmes Place. Health and Fitness VP marketing Niv Harel said the health center had been losing money, which was reflected in the new lease.
Health and Fitness operates in Greece, Hungary, the Czech Republic, and Poland. The company is in advanced negotiations to buy a Prague fitness company with three centers.
Harel said that the company’s strategy in Israel is to expand through acquisitions. “We’re seeking acquisition opportunities. Our acquisition standard for Holmes Place is a fitness center with at least 2,500 sq.m. of floor space, with a pool, Jacuzzi, and a high level of finishing. The criterion for an acquisition via Shape is 1,000-2,000 sq.m. of floor space. Regrettably, there are few opportunities.”
Health and Fitness is launching a new service targeting the business sector, called “Fit for Business”. The service will operate at Strauss Group Ltd. (TASE:STEL), Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT), Verint Systems Inc. (Pink Sheets: VRNT.PK), NICE Systems Ltd. (Nasdaq: NICE; TASE: NICE), and Texas Instruments Israel Ltd. Harel said, “The idea is take the companies’ employees, create personalized fitness programs and group training at the workplace.”
Published by Globes [online], Israel business news - www.globes.co.il - on July 19, 2007
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