Insights

Viva (ASX:VVA) share price moves on acquisition news

The Viva share price is on the move this morning, after the company announced the acquisition of six Pinnacle Health Clubs in Victoria.
The post Viva (ASX:VVA) share price moves on acquisition news appeared first on The Motley Fool Australia. –

woman looking up as if watching asx share price

The Viva Leisure Ltd (ASX: VVA) share price climbed 2% this morning, after the company announced the acquisition of 6 health clubs in Victoria.

However, the Viva share price has since retreated from $2.99 to $2.93 – the same price it closed at on Friday.

What’s moving the Viva share price

In a statement before market open today, Viva Leisure advised it has signed a binding agreement to buy out six Pinnacle health clubs with a combined total of at least 6,500 members. The clubs are located at Caribbean Park, Mulgrave, Oakley, Parkdale, Scoresby, and Upwey.

The deal is for a consideration of between $6.05 million and $6.25 million, depending on various completion conditions. It’s expected to be completed within the next 60 days. Viva will fund it using 50% debt, and 50% equity from a recent capital raise.

Commenting on the deal, Viva Leisure chief executive Harry Konstantinou said,

The Pinnacle business is a highly complementary business to Viva Leisure, and provides attractive membership options which could be rolled out through the rest of the Viva Leisure network.

Why the purchase

The acquisition will boost Viva Leisure’s presence in Victoria from 8 locations to 14 locations.

This is consistent with the company’s strategy to own more than 400 corporate locations by 2025, up from the 79 locations it has at the end of FY20.

Furthermore, Viva said the financials for the Pinnacle clubs have been solid, with the company reporting a FY19 revenue of $7.5 million, and an earnings before interest, tax, depreciation, and ammortisation (EBITDA) of $1.75 million.

For FY20, the Pinnacle clubs being acquired reported a COVID-19 impacted revenue of $5.8 million.

What does Viva Leisure do

Founded in 2014, Viva Leisure operates health clubs in Australia. The company’s brands include Clublime, Ladies Only, Psyclelife, Hiit Republic, Swim School, GymmyPT and others. 

It also owns the master franchise for the Plus Fitness, which comprise approximately 200 clubs.

About the Viva share price

Despite disruptions as a result of the government imposed lockdowns last year, the Viva share price still returned a respectable 8% in one year.

This is after the share price lost more than 70% of its value in March 2020, at the height of the pandemic.

Viva Leisure commands a market cap of $240 million.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Viva (ASX:VVA) share price moves on acquisition news appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!