| CBI Interview| ReneMoos
With this talented CEO’s acquisition of 102 Fitness First sites, HealthCity has become the largest club company in Europe
By Patricia Amend
CBI: You and your partners, Dennis Aarts and Eric Wilborts, launched what would eventually become HealthCity decades ago, but when did the company begin to break out? How did it become the sophisticated and successful organization it is today?
RENE MOOS: I began opening tennis clubs 25 years ago in Hoofddorp, in the Netherlands. Within 10 years, I’d added fitness to meet the growing demand. By 2004, Dennis and I owned eight clubs in the western part of the country, and Eric and I owned three clubs in the south. We then merged under the HealthCity name, and, over the next 12 months, we really began to grow—to 35 locations across the Netherlands. Each of us has our areas of expertise. Dennis is the director of construction,
and Eric is responsible for the golf portion of the business and also oversees our operations in France, Spain, and Italy. Our success attracted the attention of Waterland, a private-equity firm, which bought a 30% stake in the company in 2005 and another 20% in 2006.
CBI: What impact has the involvement of Waterland had on the business? If it decides to divest, would HealthCity’s management team attempt to acquire its interest? What effect do you think private equity (PE) has had on the industry?
RM: Without PE, we’d never have been able to grow the company as quickly as we have. Waterland still owns 50%, and the investors seem happy and comfortable with the arrangement. Should they decide to sell, we’d evaluate our options, including that of management purchasing a majority stake. PE, in general, has provided similar expansion opportunities for other club companies, making fitness more accessible to millions of members throughout the world.
CBI: You have two brands for two different types of clubs. Tell us a bit about them, if you would, and explain the rationale underlying HealthCity’s strategy?
RM: In Europe, there are two distinct club markets—high-service, all-inclusive facilities … and budget clubs. We have a luxury brand, HealthCity, which includes HealthCity Ladies, and a budget brand, BasicFit. HealthCity has 205 locations in seven countries; the dues range between $63.65 and $133.18 (m45-m80) per month, depending on the facility. BasicFit has 55 sites in Belgium and the Netherlands; the dues are $22.55 (m15.95) per month. Having two brands enables us to address both categories, and to identify the best business opportunities for each brand. It allows us to be competitive.
CBI: The big news, obviously, is your acquisition, in two transactions, of a large portion of Fitness First’s European portfolio. What’s the story behind that rather remarkable development?
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Highlights » Dawn of a multinational » Private-equity power » Fitness First acquisitions » Obstacles and opportunities
As a young man, Rene Moos loved to play tennis. He became a national champion in the Netherlands and served as a tennis pro in the U.S., while studying business at the University of Tennessee. By 1986, Moos had returned to the Netherlands and opened a tennis club in Hoofddorp, which, over time, incorporated fitness amenities. Eventually, he partnered with Dennis Aarts, who had also played on the national team, and the two opened eight clubs under the Aarts Sports name. Eric Wilborts owned three successful multipur- pose clubs called HealthCity, and, in 2004, the three men agreed to merge their businesses under that name. Since 2005 and 2006, when Waterland, a private-equity firm, purchased a 50% stake in the company, HealthCity International (HCI) has grown aggressively through new construction and acquisitions. It now has a total of 265 locations in seven countries. Moos serves as the company’s CEO. —|
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ihrsa.org | SEPTEMBER 2011 | Club Business Internat ional 33
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