Town Sports International Holdings Inc., (NASDAQ: CLUB) was in a breakout in yesterday’s trading session. The stock gapped up to close the day with gains of 36.52%. This followed its announcement that it had agreed to the acquisition of Flywheel Sports Inc.’s, studio business. The company further announced that the acquisition would be completed in Q1 of 2020, once the closing conditions are fully met.
In a press statement, Town Sports International CEO Patrick Walsh stated that, Flywheel was an iconic brand in the fitness market and that, its acquisition fits well into the company’s strategy. He added that, the acquisition will facilitate the company in improving its members’ fitness experience. This will be done by offering luxury products, while at the same time offering them extra benefits in different locations.
On top of that, the CEO stated that, the company was looking forward to looping in Flywheel’s 5-star standards into its operations, across all locations. He went on to state that, the acquisition will help improve the gym experience, and also give customers variety in content, and at more affordable prices.
Commenting on the deal, Darren Richman, co-founder of the company that owns Flywheel stated that, they believed in the direction that Patrick Walsh was taking Town Sports International. He added that he believed Patrick was facilitating the delivery of more content to consumers that want value. Through the deal, Town Sports International will have a better revenue potential due to access to Flywheel’s boutiques through membership options.
Going by its price action, CLUB is in a breakout, and on high volumes. The stock opened the day at $2.29 after a gap up. It then traded between a low of $2.11 and a high of $2.70, before closing the day at $2.43. Volumes in the day stood at 1.2 million.
About Town Sports International Holdings Inc.
Town Sports International Holdings Inc. is an American Fitness clubs company. It is based in Jupiter, Florida.