Budget fitness club operators Pure Gym and The Gym Group have today announced plans to merge, pending regulatory approval.

The deal marks the union of two of the leading brands in the highly competitive budget club sector, who in recent years have been jostling for market share.

Financial terms of the agreement have not been disclosed.

“This agreed deal unites two innovative players in the fast-changing gyms sector, where the low-priced model is improving consumer choice and contributing to better exercise levels across the country,” says Peter Roberts, chief executive of Pure Gym.

Meanwhile, The Gym Group chief executive John Treharne believes the merger will put the company on a firm footing to further challenge traditional gym models.

He says: “This enlarged business, combining great facilities and excellent trainers, will provide a compelling alternative to existing gym providers.”

As part of the merger agreement, Pure Gym’s Roberts will become executive chair of the new group, while John Treharne will be chief executive.

The new company will be a combination of the current Pure Gym – owned by CCMP Capital Advisors, LLC – and The Gym Group, owned by Phoenix Equity Partners and Bridges Ventures.

The two companies will continue to operate independently until regulatory approval and completion terms are finalised.

Pure Gym launched in 2009 and operates 61, 24-hour gyms across the UK, with one site in Northern Ireland.

The Gym Group was founded in 2007 and operates 42 gyms across Great Britain.

Both run a low-cost business model, typically offering contract-free membership based around cardio and strength training equipment and group classes.