Kent Orgreen, CEO of World Class Romania
Resource Partners has signed an agreement to sell its stake in World Class Romania to African Industries Group for an undisclosed amount.
On 15 April 2022, Vectr Fitness, (part of the African Industries Group, a conglomerate of private companies) and Resource Partners, the largest shareholder in World Class, announced the implementation of a deal that would include world-class Romania under the Vectr Fitness structure.
While Resource Partners leaves full world-class equity ownership, the management team led by Kent Orgreen, CEO of World Class Romania, will continue to lead the company and will continue to contribute a minority stake.
The transaction underscores Resource Partners’ ability to support leaders in Central European markets in their growth and development. World Class is the largest operator of health and fitness clubs and swimming pools in Romania. Initially, the majority stake in World Class was acquired by Resource Partners in 2014, the investment fund sponsoring management shares at the time.
During the period when Global Romania was owned by Resource Partners, the network has quadrupled and currently operates 41 active health and fitness clubs and 20 swimming pools in Bucharest, Cluj, Brasov, Timisoara, Iasi, Ploiesti and Constant. The company made seven acquisitions and merged into its own network. World Class Romania has also successfully developed new sales initiatives, such as the digitization process, the introduction of an automatic monthly payment system and food and beverage sales in clubs.
The acquisition of World Class Romania marks a new phase of African Industries Group’s investments in Romania, following previous investments in real estate, agriculture and agricultural equipment distribution.
“I am very happy that Global Romania will be a part of AIG, a well-known investor in Romania. In the last years of the period in which we had a world-class network, and with the support of the management team led by Kent Orgreen, we were able to establish a market leader in the fitness industry, in A country with a population of about 20 million.We have invested together with the management team, which has succeeded in expanding the company and improving the company’s operations significantly, despite the challenge it is facing after the COVID-19 pandemic.We hope that the network will continue to expand after the acquisition of the group African Industries on the “World Class” company.
“We are grateful for all the support and trust that Resource Partners have invested in the world class and in our team. It has been a journey of success and growth in both good times and tough times. Today World Class is the largest network of health, fitness clubs and pools in the country. World Class has become the symbol of a more and more lifestyle Health and Vitality. We are now joining forces with the African Industry Group to continue developing the network, expanding it to new strategic locations, to continue being a force that contributes to improving the health of Romanians and accelerating our mission: to inspire more Romanians to be more active, more often and live a healthy lifestyle” says Kent Orgreen, CEO of World Class Romania.
“We are very optimistic about the growth of the Romanian market and are actively involved in evaluating investment opportunities in various fields and industries in the country. World Class Romania is our first investment in health and wellness that we intend to develop further with the team,” said Raj Gupta, President of the African Industries Group. current management.
World Class Romania and its shareholders have been advised by Alpolesco Stratolat – Attorneys at Law.
Vectr Fitness has been advised by: Radu, Tarcila, Padurari, Retevoiescu SCA for transaction advisory and Deloitte Romania for business, financial and financial advisory.
Global Romania is the market leader in the domestic wellness industry, with a total of 41 health and fitness clubs across the country and 20 swimming pools, as well as nearly 60,000 members. World-class clubs offer services of the highest standards, state-of-the-art facilities and diverse categories. World Class is a traditional partner of LES MILLS™ – the world’s largest supplier of fitness concepts. World Class Romania also offers a premium health and fitness club concept, called W, where members can train and relax in an intimate and exclusive setting.
The African Industries Group is a diversified global group of private companies with investments in Europe, the Middle East and West Africa. In Romania, the company is engaged in agribusiness, distribution of agricultural machinery and equipment, development and real estate investments.
Resource Partners is an independent private equity investor, founded in 2009 by a team of experienced managers who have previously made similar investments in leading regional and international financial institutions and funds. To date, Resource Partners has invested more than 300 million euros in the development of 16 medium-sized companies in Poland and other countries of Central and Eastern Europe. Resource Partners invest in fast-growing companies with experienced management, which they support with their expertise in managing rapid organic growth and through acquisitions.