Les Mills International, Auckland, New Zealand, has acquired the Les Mills Midwest agency from SCW Fitness Education, Northbrook, IL, for an undisclosed amount.
Effective Feb. 1, distribution of Les Mills programs in the Midwest will be handled by its wholly-owned subsidiary, Les Mills US, according to a company announcement. The clubs affected by the change are located in 12 states: Illinois, Kansas, Missouri, Ohio, Indiana, Michigan, Nebraska, South Dakota, Iowa, Minnesota, North Dakota and Wisconsin.
There will be no changes to the training, auto-submission, ratings, pricing and instructor portal, according to an e-blast from SCW Fitness about the change.
Sara Kooperman, who owns SCW Fitness Education, says the change will benefit the 680 club operators who will switch to Les Mills US
“I don't think they will suffer a drop in support,” he says. “Our hope is that because it's a bigger organization, they'll potentially be able to increase support even more.”
SCW became a Les Mills distributor 10 years ago. During that time, SCW increased the number of licensed facilities more than fivefold, Kooperman says. Many of those operators may still be working with the same people, as Kooperman says the goal is to transition some of SCW's support staff to work for Les Mills. US SCW Fitness has about 50 employees and about 20 of these worked either wholly or partly on the Les Mills distribution side of the business.
SCW will maintain a relationship with Les Mills, as the company just signed an eight-year deal to sponsor SCW conventions. Les Mills will use SCW's 1,600-square-foot studio in Northbrook for training each month, Kooperman says.
Part of the impetus for the sale was to allow SCW to focus on its expanded operations, which include SCW Mania shows and WATERinMOTION, a water exercise program developed by SCW Fitness, Kooperman says. When SCW first started as a Les Mills distributor, the company put on six SCW Mania shows each year with fewer sessions and speakers than today. Last year, however, it added its eighth show, with even more sessions and speakers in each show. SCW created the WATERinMOTION program seven years ago and recently expanded it with a program aimed at seniors.
The sale of Les Mills Midwest leaves Les Mills with a non-affiliated distributor in the United States, Fitmarc, which serves the South Central region of the country.
Phillip Mills, CEO of Les Mills International, said in a statement from the company: “Sara Kooperman and her team helped bring the Les Mills brand to the United States and I will be forever grateful for her leadership and collective efforts of SCW Gymnastics Team'.
Les Mills US CEO Jesper Magnusson said: “We plan to continue to build on our strong partnership with SCW Fitness, including an increased level of support for the MANIA Fitness professional conferences across the country.”
Les Mills US will maintain an office in Chicago, along with its existing offices in San Francisco and its US headquarters in Baltimore.