Pihlajalinna to expand its service offering to wellbeing services – acquires the Forever fitness centre chain

Pihlajalinna Plc                            Stock exchange release                                       9 February 2018 at 12:40

Pihlajalinna to expand its service offering to wellbeing services – acquires the Forever fitness centre chain

Pihlajalinna, one of the largest social and healthcare service providers in Finland, has acquired the Forever fitness centre chain. In so doing, Pihlajalinna also expands its service offering to wellbeing services. Forever fitness centres are specialised in offering diverse wellbeing services for adults who exercise. Ten fitness centres in the Southern Finland area will be transferred under the ownership of Pihlajalinna.

Fitness centre activities will complete Pihlajalinna’s preventive occupational healthcare services and rehabilitation services carried out after specialised care procedures.

“Promoting wellbeing is the future of healthcare. Since the health and social services reform, an increasing proportion of the healthcare sector is moving from service-specific pricing towards a fixed-price business model. It means that we are not paid, for instance, for each visit to a doctor, but rather for taking care of people’s health,” states Joni Aaltonen, CEO of Pihlajalinna. He continues: “In this trend, Pihlajalinna is a forerunner since more than 60 per cent of our revenue comes from fixed-price business. Even now, our business operations are substantially based on keeping people as healthy as possible.”

The Forever chain consists of 12 business locations, 10 of which will be transferred under the ownership of Pihlajalinna. Pihlajalinna will own approximately 70 per cent of the fitness centres. The transaction will be completed on 16 February 2018. In 2017, the revenue of the fitness centres to be acquired totalled approximately EUR 17 million, and their profitability was good. The transaction has no material effect on Pihlajalinna’s financial outlook.

In addition to gym, group exercise and personal trainer services, Forever is specialised in offering, for instance, Fustra instruction, which aims to strengthen body weaknesses with correct postures and movements. Furthermore, the fitness centres offer services such as physiotherapy and nutrition coaching.

“We want to provide people with the possibility of succeeding in achieving their goals — whatever those goals may be. As an owner, Pihlajalinna will increase the service offering and possibilities to succeed for our customers,” states Mikko Mustala, founder and managing director of the Forever chain. Mustala will continue as the managing director and shareholder of the fitness centres. “It’s great to have such a strong national healthcare service provider as our owner.”

Further information:
Joni Aaltonen, CEO, +358 40 524 7270
Siri Markula, Head of Communications and IR, +358 40 743 2177, siri.markula@pihlajalinna.fi

Nasdaq Helsinki
Major media

Pihlajalinna in brief
Pihlajalinna is one of the leading private social and healthcare services providers in Finland. The company serves private individuals, businesses, insurance companies and public sector entities, such as municipalities and joint municipal authorities. In its private clinics and hospitals Pihlajalinna provides general practitioner services, specialised care, emergency and on-call services, a wide range of surgical services, occupational healthcare and dental care. In addition, the company offers innovative social and healthcare service provision models to public sector entities.