Xercise4Less and RMS International get BGF backing
UK budget gym chain and toy manufacturer latest companies to secure growth capital from the government-backed fund
The Business Growth Fund (BGF) has announced today that it has made investments in two UK businesses; Leeds-based discount gym chain Xercise4Less and Manchester toy manufacturer and distributor RMS International.
Xercise4Less, which operates 35 gyms nationwide and achieved turnover of £21.9m for 2015, has secured £7.6m from the BGF in a bid to help roll-out an additional 15 to 20 gyms across the UK.
Founded in 2006 by former rugby player Jon Wright, the gym brand currently employs over 600 people, claims to have over 250,000 members, and recently featured in the Sunday Times Fast Track 100 index.
RMS International, which designs, sources and distributes toys, craft and stationery, has received an undisclosed amount to help it expand.
Established in 1982, RMS has offices in the UK, Miami, Boston, Hong Kong, Shanghai and the Netherlands, and creates a number of products under its own brand such as Grafix and Blocktech, alongside ‘licenced products’ for Disney and Universal.
As part of the deal, former Hamleys chairman and ex-Body Shop managing director Stuart Rose has joined RMS’ board as chairman.
On the deals, BGF commented:
“Xercise4Less is an example of how an ambitious company can disrupt an established model. Wright and his team have understood the market and the opportunity available to them and have used our growth capital to build a business of scale.”
“RMS has built significant expertise, with a strong reputation for quality, creativity and distribution. We are excited to be supporting the company as it looks to grow its international presence.”