Viva Leisure's Expansion and Funding Announcement

Viva Leisure Limited (ASX: $VVA) has announced its expansion into Western Australia through the acquisition of eight health club locations. The company has entered into binding agreements for two strategic acquisitions, adding five and three locations respectively, with a total consideration of $15.7 million. To support these acquisitions and further strategic initiatives, Viva Leisure is launching a fully underwritten institutional placement to raise $16 million.

Executive Commentary on Expansion and Funding

Our journey has been one of growth, innovation, and unwavering commitment to delivering exceptional value to our members and stakeholders. This has seen Viva Leisure grow in five short years since listing to be the second largest health club owner in the nation and the second largest network of health clubs in the country, with the Club Lime brand being Australia's largest non-franchised health club brand. With guidance EBITDA for FY2024 forecast to reach over $35 million, the financial performance of the business has been resilient, growing an impressive 400% since IPO in June 2019. The addition of these two strategic acquisitions will deliver further diversification and scale, and an even stronger growth trajectory.

Summary of Expansion and Funding Announcement

Viva Leisure's expansion into Western Australia through the acquisition of eight health club locations marks a significant milestone in the company's growth and expansion strategy. The acquisitions are anticipated to contribute over $3.9 million EBITDA per annum moving forward pre-synergies. The company's CEO, Harry Konstantinou, highlighted the resilience and impressive financial performance of the business, with forecasted guidance EBITDA for FY2024 to reach over $35 million. The fully underwritten institutional placement to raise $16 million will support the acquisitions and further strategic initiatives, reinforcing Viva Leisure's commitment to delivering exceptional value and driving growth.