Pure Gym is preparing for a change of ownership, with a stock market float worth £500m or more the most likely outcome, Health Club Management can confirm.

Having taken control of Pure Gym three years ago, US private equity firm CCMP Capital Advisors has hired the investment bank Rothschild to review options for cashing out on its investment.

With around 140 sites, Pure Gym is the UK’s largest gym chain and is currently in the process of converting the majority of the 42 clubs it bought from LA fitness last year for an estimated £70m. Pure Gym was recently named the 9th fastest growing private company in the UK, and is expected to open a further 35-40 sites (including the remaining LA fitness sites) during 2016.

This rapid expansion has seen Pure Gym grow to double the size of nearest budget rival The Gym Group, which it nearly merged with 18 months ago. The Gym Group’s market value has increased to around £260m since its own IPO in November, and the market appetite for a directly comparable business would suggest that Pure Gym could receive a valuation in excess of £500m if it were to follow suit.

It is understood that a change of ownership is likely to take place in the next six to 18 months – be that through an IPO or a buyout by private investors – however current stock market turbulence and several other factors mean that a clear timeline for a deal is yet to be established.

Despite having experienced mixed fortunes in its previous brushes with the stock market, the health club sector has been attracting close attention from investors in recent months. Following The Gym Group’s successful IPO, fitness industry analyst Gareth Jones suggested that the float may embolden other operators – particularly those with private equity backing – to reevaluate the merits of going public.