By Brazil Stock Guide — Smart Fit has agreed to acquire a minority stake in Buddha Spa, expanding Brazil’s largest gym operator further into the broader health and wellness market.
The company may invest up to R$32 million ($6 million) to acquire and subscribe for shares representing as much as 20% of Buddha Wellness Group Brasil’s total and voting capital, according to a market filing released on Monday.
The transaction also gives Smart Fit a call option to acquire an additional 10% stake, potentially lifting its ownership to as much as 30%. A shareholders’ agreement governing the company and the relationship between its owners will be signed upon closing.
The investment is part of Smart Fit’s strategy to broaden its business beyond traditional gyms and build a wider health and wellness ecosystem through complementary services and established consumer brands.
Founded in 2001, Buddha Spa is Brazil’s largest spa chain, according to Smart Fit, with 149 locations across 12 states. About 96% of its network is operated by franchisees, giving the company an asset-light expansion model. Its services include massages, day-spa packages, facial therapies and aesthetic treatments.
For Smart Fit, the deal adds another wellness vertical to a platform that has historically been centered on gyms and fitness-related services. Buddha Spa, in turn, gains a strategic shareholder with a large consumer base and a nationwide fitness network, potentially opening room for commercial partnerships and cross-selling opportunities.
The final size of Smart Fit’s stake and the amount ultimately invested will depend on certain commercial conditions set out in the agreement. Closing is also subject to customary conditions precedent.
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