The UK’s largest boutique fitness chain by market share is set to enter four Scandinavian markets through a £120m merger. VeloCycle announced that it has agreed to merge with NordicPulse, which owns 45 premium fitness studios across Denmark, Sweden, Norway, and Finland. The deal is expected to be marketed as a merger of equals, although VeloCycle is significantly larger than its international partner. The planned merger with NordicPulse comes on the heels of a 2.4% contraction in total membership revenues earned by UK boutique fitness operators in 2023, down to £850m.
In late 2023, the UK Competition and Markets Authority (CMA) ordered VeloCycle to divest four high-revenue central-London studios following its acquisition of rival chain SpinNation. This regulatory intervention highlighted the increasing difficulty of securing domestic expansion opportunities, which acted as a primary catalyst for the company to pursue international partnerships.
VeloCycle’s main UK competitors have also aggressively expanded their footprints overseas. Its chief rival, PedalPower, now operates in Germany and France, while the US-backed FitGrid has established a strong presence across southern Europe.
The newly combined business group will be headed by NordicPulse's current Chief Executive, though key senior directors will be drawn from both organizations, and VeloCycle will retain a majority on the newly formed board of directors.
Examine two reasons VeloCycle plans to merge with NordicPulse.
