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Les Mills started out with a chain of gyms, but their global fitness program company is a major international export.
Accident Compensation Corporation has acquired an 18 percent stake in global fitness firm Les Mills International, in what is believed to be a multi-million dollar deal.
LMI is the fitness program spin-off of the successful New Zealand-based gym chain Les Mills, whose programs now run in 20,000 overseas fitness clubs and are displayed on their on-demand streaming platform.
The gym business shares a common majority owner, the Mills family, but is not part of ACC’s investment.
ACC declined to disclose the sum involved, but is understood to handle deals in the $ 30 million to $ 100 million space.
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The shares were purchased from existing shareholders, including founder Phillip and Jackie Mills.
Martin Goldfinch, ACC’s director of private markets, said the move was in line with the corporation’s strategy to partner with major New Zealand companies, following similar investments in Icebreaker and Rocket Lab.
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Aaron Smith during a New Zealand All Blacks gymnastics session at Les Mills in Wellington in October.
Phillip Mills said ACC, which had a proven track record of successful long-term investment growth.
“It’s the best of both worlds,” he said.
“We’re going to get some energy and renewed experience in the business with two new board members and the kind of financial backing that will help us access funds to execute more transformational growth initiatives.”
The Mills family will remain the largest shareholder in LMI and Phillip and Jackie Mills will remain on the board, along with two ACC directors.
As Covid-19 forced people to stay indoors, there has been a global surge in interest in online fitness programs, with Les Mills providing free local TV classes during the New Alert Level 4 lockdown. Zeeland.
ACC manages about $ 2 billion in assets spanning property, infrastructure, and private equity.
The state corporation said it was also seeking proposals for its recently launched Impact fund with the goal of having a positive impact on health and wellness, as well as providing a business return.
