There are few things that feel as fantastic as the buzz through your body after a good Vinyaya sesh where a skilled yoga instructor has conned you into a full body workout under the guise of a ‘restorative’ yoga practice. For you non-yogis out there, I implore you to try it for yourself. It’s mildly addictive.
Viva Leisure (ASX: VVA) knows this and is aligning their practice (see what I did there) with some seriously Instagrammable yoga and pilates studios.
The health club operator has welcomed eight Rebalance Pilates & Yoga studios into their network of Australia wide fitness facilities.
Launched in 2013, Rebalance now consists of 11 locations under a franchise agreement. Of those, Viva now owns 8, with the remaining 3 in the process of de-franchising. This means that Viva now owns all locations in the franchise, allowing them to re-establish franchising systems and continue to grow the brand.
The new studios will cater to people seeking a lower cost offering ($40-$45 per week) and will be exclusively for yoga and pilates. The service will also be available as an additional add on for Club Lime and HIIT Republic members.
Viva is also rebranding one of their facilities in the ACT, converting it from The Studio by Club Lime to a Rebalance studio, thereby increasing the network of Rebalance locations to 9 and will be the first in the ACT. The refreshed studio is expected to open in January 2022.
Despite lockdowns, Viva has had a productive year and now owns 130 locations. The Company has acquired or opened a new location every 9 days since listing on the ASX in January 2019 (which CEO and MD Harry Konstantinou proudly posted on his LinkedIn profile).
Boutique locations like Rebalance are expected to fuel the next phase of growth for Viva. Harry Konstantinou, CEO and MD of Viva said: “The acquisition of the Rebalance Pilates & Yoga studios as well as the Master Franchisor represents an exciting opportunity for Viva Leisure to continue expanding into the wellness health market. The Rebalance brand is a well-respected offering throughout its target markets in Queensland and with Viva’s backing will continue its expansion and presence in other States and Territories.”
“The expansion of Viva’s wellness and boutique portfolio of offerings and the increase in locations creates a great spring-board into 2022.”
The acquisition will contribute approximately $1 million to the annual EBITDA of the business and will be funded partially by debt and equity from cash reserves.
Samantha Freidin is a business journalist at Emerald Financial whilst also completing a Masters of Marketing and Digital Communications at Monash University.
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