The Studio C fitness network sells for about NIS 10 million

The network of design and design studios is acquired by Doron Cohen and Nitzan Arie in a transaction valued at NIS 10 million. Studio C is the second largest sports hub in the Israeli market in a nationwide layout

Gymnast (Photo: shutterstock)

Woman exercising (Photo: ShutterStock)

The network of design and tuning studio centers, a studio, replaces owners - the "Globes" became known. The network, which is considered the second largest in the field of fitness in Israel and has 35 branches nationwide, is purchased by Doron Cohen and Nitzan Arie along with a group of financial investors from the group of partners who currently hold it, most notably Samson Harel, Barak Kana and America Israel. The extent of the deal signed in recent days is unknown, but according to sources, it is estimated at about NIS 10 million. Under Studio C, about 700 employees are currently employed.

The purchase is made by Cohen and Arie through a tuning company owned by them that specializes in content consulting and marketing strategy and in the past has been the owner of educational networks, which is in fact their first entry into the industry.

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Today, Studio C focuses on coaching and tapping services for women aged thirty plus, and is considered an outdated network that has not really been able to adapt to changes in customer habits, so it will have to withstand massive change and probably property investments, technological adjustments and branding. For example, today, the network publishes the bulletin board in the bulletin board and does not allow its clients to sign up for classes in a dedicated app, a service that exists even today for personal trainers or private studio owners.

To the best of our knowledge, purchasers intend to maintain the appeal for women but at the same time make massive changes and, among other things, expand the physical layout of the network, also appeal to younger audiences, and offer more flexible subscribers - an issue that has previously been criticized.

Studio C was founded three decades ago and is considered one of the largest fitness chains in Israel with 35 branches after the Holmes Place group which operates about 45 clubs. In terms of number of subscribers, Holmes Place is showing a significant gap as it reports about 139,000 in the third quarter of 2019, while Studio C currently has about 20,000 subscribers.

The Israeli sports market has been growing in recent years as a result of increased awareness of the importance of physical activity in a way that is reflected both in the growth of the industry and in the industries that complement it, most notably sports wear. According to data presented by Holmes Place in an investor presentation, the Israeli fitness market is approaching NIS 4 billion, growing by 8 to 6% annually since 2013.