News 11.04.2006
Alfa Capital Partners and World Class announce the formation of a strategic partnership Moscow, April 11, 2006 – Alfa Capital Partners and World Class announced the acquisition of a stake in World Class by Alfa Capital Partners and the formation of a strategic partnership. The companies plan to jointly develop World Class fitness chain and enter the mid-market segment.
Alfa Capital Partners and World Class plan to invest up to US$120 million by 2010 in the development of the existing World Class chain and acquisition and re-branding of other fitness clubs. Partners also plan to expand into mid-market segment with a new brand.
Commenting on the deal World Class President and Founder Olga Sloutsker said "World Class and Alfa Capital Partners partnership represents the largest transaction to date attracting foreign institutional investors into the Russian fitness industry. It demonstrates investor confidence in the industry and its vast growth potential."
According to the latest estimate by World Class, the penetration of modern fitness clubs in Moscow is 1.5%-2.0%, compared to London’s 20% and Barcelona’s 34%. Experts forecast that the market will continue to grow at 20-30% a year until it reaches the penetration rate of at least 10%.
"Since its inception World Class has been at the forefront of the fitness industry in Russia bringing high quality services to Russian consumers. The company represents one of the most promising success stories in building and developing a market leading company. We look forward to working with the outstanding management team at World Class and supporting the company’s growth in this dynamic sector" said Alfa Capital Partners’ CEO Richard Sobel.
Olga Sloutsker will continue as President and will become Chairman of the Board of World Class. ACP representatives on the Board will include CEO, Richard Sobel and Senior Managing Director, Daniel Wolfe. Vladimir Skvortsov, President of Troika Dialog will also join the Board on behalf of World Class.
Troika Dialog acted as an exclusive consultant to World Class in this transaction.
WORLD CLASS is a leading Moscow-based chain of upscale fitness clubs. It operates eleven clubs in Moscow and the surrounding area and 10 clubs in the regions and the CIS. World Class’ market share in premium market segment is over 30%.
Since 2000, World Class has been listed in top 25 world’s best fitness clubs according to Global 25. In 2001 and 2004 World Class was awarded with "Brand of the Year/EFFIE" – a professional award in marketing and branding. In 2005 World Class trade mark was recognized as "Superbrand" by the Superbrand expert committee. In the same year company was nominated as a laureate of "Huperestate Awards".
For more information on World Class please contact company’s press secretary Anastasia Chernetskaya, at +7495 771-66-00 or press@wclass.ru. or visit World Class web site www.worldclass.ru.
ALFA CAPITAL PARTNERS, a Moscow-based private equity and real estate investment group, seeks to invest in leading companies in emerging and growing sectors in Russia, Ukraine and the CIS. Alfa Capital Partners manages total US$285 million in capital from international institutional and private investors alongside capital from Alfa Group.
Alfa Capital Partners had the first closing of its private equity fund of US$105 million in March 2006. Company is also the Regional Manager of the US OPIC-sponsored US$180 million Great Circle Fund. Great Circle Fund is a dedicated emerging markets infrastructure fund with regional focus on Russia, CIS, Turkey, Baltic and Mediterranean regions.
Alfa Capital Partners is an affiliate of Alfa Group, one of Russia’s largest financial industrial groups.
For more information about Alfa Capital Partners, please contact Ms. Anna Shumaylova, marketing coordinator, at: +7 495 775-1828 or ashumaylova@alfacp.ru or visit www.alfacp.ru. |
