TLT has advised Encore Capital, the London-based private equity investor, on the acquisition of 37 Degrees, a luxury health and fitness operator, from Albion Ventures LLP. The transaction comes two weeks after TLT also advised Encore on the acquisition of The Third Space, another luxury health and fitness group, from Graphite Capital. The acquisitions are part of Encore's strategy to expand upon its existing investment in The Reebok Club in Canary Wharf, Europe's largest luxury health club.
37 Degrees is based within the prestigious More London estate near Tower Bridge, overlooking the River Thames, with over 3,000 members. The Third Space runs two London venues, in Soho and Marylebone, and has over 5,000 members on its books, reportedly including Prince Harry and Guy Richie.
The TLT team on both deals was led by Jon Gill, Corporate Partner, drawing on a wide variety of specialists from TLT's dedicated leisure sector team. Jon Gill commented:
"We were delighted to work with Encore in using our leisure sector and private equity expertise to deliver these two transactions. The gym and health club market is increasingly polarised between luxury and low-cost operators and it was great to support Encore in their ambitious growth plans to develop a portfolio of iconic London locations."
The Encore Capital team was led by Partners Shirin Gandhi and Ed Shah, who said:
"We have worked with Jon and his team at TLT for the last 18 months and really enjoyed working with them to deliver these two strategically important deals. Bringing two transactions together in a tight timeframe is always challenging and TLT's responsiveness, legal expertise and project management skills were key to achieving a successful outcome."
The TLT team included corporate solicitor Amelia Jarrett, real estate partner Julian Mant, real estate associate Rachel Channer, tax partner Nathan Williams and tax solicitor Natalie Stoter, employment partner, Esther Smith and employment associate Sarah Skeen. Jon Stewart, banking & restructuring partner, also advised on debt finance facilities provided by RBS for the transaction.