Basic-Fit (AO) | Buy | Add on M&A in Germany

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Basic-Fit (AO) | Buy | Add on M&A in Germany

Basic-Fit Buy | Target Price: EUR42.00

Company description Management

Basic-Fit is the leading fitness club operator in Europe. It focuses on the low-cost René Moos (CEO)

segment and is active in the Netherlands, Belgium, Luxembourg, France, Spain, Maurice de Kleer (CFO)

and Germany through more than 1,600 clubs. In Belgium, it has a market share of Key shareholders

over 60%, and in the Netherlands and France it is the market leader with c. Free float 81.70%

25%-35% share of the market. Its competitive moat stems primarily from AM Holding BV 11.70%

network effects and economies of scale. Impactive Capital 10.10%

3i Group plc 6.60%

Investment case Valuation methodology

The long-term trend in the fitness market are favourable due to We use a DCF model with a WACC of 11% and 2% perpetual

a greater focus on health. Driven by club openings, we remain growth.

positive on Basic-Fit's growth potential and believe the We also compare Basic-Fit to other listed player in the industry.

company will be one of the key winners in the EU market. Lastly, we build a seperate DCF model for the more mature

In France, the quality of Basic-Fit's offering seems to be Benelux unit.

improving. In combination with a more mature club network, Risks to our rating

this should result into faster EBITDA growth in its largest market. For the near term, the magnitude of pressure on EU consumers

With club openings slowing down to c.50 p.a., Basic-Fit is able to and its impact on general membership trends.

finance its expansion via organic CF generation from H2 2025 In the longer term, material changes in the competitive

onwards. Debt levels will decline as well. landscape that could hamper growth or put pressure on yields.

Catalysts Inflation