Cube Fitness, promoted by CultFit Healthcare, which owns and operates the Cult-branded chain of fitness centres, has acquired Bloc3, which owns and operates the Tribe-branded chain of fitness centres.
CultFit is majority owned by CureFit, a startup co-founded by former Flipkart executives Mukesh Bansal and Ankit Nagori.
J Sagar Associates (JSA) advised Bloc3 on the sale. The firm has assisted Tribe from its early days, helping to formulate policies and obtain operating licences, and advising on opening new fitness centres and general corporate matters.
Partner Probir Roy Chowdhury led JSA’s team, assisted by senior associates Vishnu Nair and Soumya Patnaik and associate Yajas Setlur. Chowdhury told India Business Law Journal that structuring the deal was a challenge. “A new joint venture [JV] company had to be incorporated by Cult and the promoter of Tribe to acquire the business of Tribe,” said Chowdhury. “Tribe is a partnership and one of the partners was being bought out, i.e. will not be joining Cult. The promoter has been employed by the parent entity of the JV and will have earn-outs from the JV over a course of four years.”
Cube Fitness was represented by its in-house team.