Chris Hemsworth muscle boosts FLG venture Centr

It’s Wall Street’s equivalent of a Hollywood blockbuster as Chris Hemsworth signs a deal in Australia’s biggest gym business.

Chris Hemsworth photographed in front of Sydney Opera House whilst in town to promote his new movie Thor: Ragnarok.

It’s Wall Street’s equivalent of a Hollywood blockbuster — Australian star Chris Hemsworth signing a deal with private equity to take a “meaningful” slice, alongside his management company, in Australia’s biggest gym business.

In his first significant deal in the business world, Hemsworth has not only emerged as a shareholder in Fitness & Lifestyle Group — owned by Quadrant Private Equity — but he also collaborated with them and a team of experts to this week launch a new digital health and fitness program, Centr.

“My decision to partner alongside Quadrant Private Equity was based firmly on their deep industry knowledge of the global fitness, nutrition and wellness sectors,” Hemsworth tells The Weekend Australian.

None of the parties are prepared to talk numbers, but Hemsworth and his management team’s slice is described as “meaningful” and is believed to be in the millions.

The first meeting between FLG, Hemsworth and Ward Blacket Investments — the investment arm of Hemsworth’s management company, Fourward — was in October 2016, and 794 days later a deal was done.

Not only did they sign a deal for Hemsworth and Ward Blacket Investments to become shareholders in FLG, but they also merged their expertise to create and fund Centr. FLG, which includes Fitness First Australia, got a taste this week of the star power Hemsworth will bring with his investment, with more than 100,000 people joining Centr since its launch on Monday.

Hemsworth isn’t just the face of Centr or a passive investor in FLG, according to Trent Blacket, managing director of Ward Blacket Investments. Blacket says the Thor star has been engaged on the deal throughout the due diligence process.

“He has been in the weeds on this; the exact equivalent if it was a major motion picture,” he says.

“He has had to be because it’s the first time it’s his name (attached to a company). He is heavily exposed, so he had to learn quickly alongside us.

“He is really representing to the world that I support these people, I believe in this, I stand for these people. It wasn’t until such time as he was equally comfortable as we were with being educated and the diligence process that this was possible.”

Chris Hemsworth adds star appeal. Picture: Greg Funnell

Blacket adds that Fourward didn’t make a beeline for a fitness investment, saying that a search started for what was a fit for Hems­worth and then who was the “best in breed” in that sector in the Asia-Pacific region.

He says Fourward made a decision before the FLG deal to seek investments that were at the intersection of Hollywood and Silicon Valley and it wasn’t until the Quadrant deal came along that they found that match.

Blacket also highlights that in the early days of Fourward, which was founded by chief executive Will Ward, the company didn’t have the money to make significant investments.

“Our first investment was about $25,000. We were just trying to go steadily at first and then this opportunity came up,” Blacket says.

Chris Hadley, executive chairman of Quadrant, says the endorsement from Hemsworth and his management company reflects the strength and quality of the FLG business and the power of that brand globally.

FLG, which has 10 consumer brands with more than 470 health clubs and more than 725,000 members, is headquartered in Australia and employs more than 6500 people across Australia, New Zealand and Southeast Asia.

There is market talk that Quadrant could look to float the business later this year, with an enterprise value tipped to be about $2 billion.

FLG’s chief executive, Greg Oliver, who started in the industry more than 40 years ago as a gym instructor, says Hemsworth is a perfect fit for the company to partner with.

“Bearing in mind he is a guy who is well known and his career is going well, but to the extent that he also wants to branch out and involve himself in business, you couldn’t find a better business for him to be involved with than what we are,” Oliver says.

He says Centr offers a holistic approach to health and fitness. It is globally available via an iOS app, Apple Watch and online, and offers daily workouts, meal plans and meditation exercises from experts connected to Hems­worth.

“It is an extension of how Chris lives his life and the people that have involvement in keeping him in the shape that he is in,” Oliver says. He adds that the creation of Centr started with the same focus from all parties — to create a product that could positively ­affect people across the globe.

“There’s been a lot of blood, sweat and tears to building this. We have taken our time to get it right, so we are all proud of what we are going to deliver,” he says.

FLG has already expanded into Southeast Asia and further growth plans are on the cards for the region. Oliver says they are looking at how Centr could affect more people’s lives in all regions, not just English-speaking ones.

“We see it as a fantastic beachhead for us to use to help people in those regions to subscribe to a product and a program,” he says.

Blacket views the partnership with Quadrant and FLG as long-term. “Having spent 2½ years learning about the (fitness) industry, we like it and see great growth prospects, particularly under Greg’s leadership,” he says.

“If they will have us, and Greg stays in charge, we intend to stay in business with Greg for a very long time.”