Hagabadet is a spa and fitness centre in the premium segment located in Gothenburg, Sweden. The bath is housed in a building that is protected as a cultural heritage and has roots that go back 150 years to when the bath once started as the Renströmska Public Bath.

Today, Hagabadet offers a spa with access to four swimming pools, fitness training and a number of trainer-led group exercises, including Gothenburg’s widest range of yoga sessions, and the restaurant Axel Engström’s Vineyard in the building’s glassed-in yard. Hagabadet also arranges conferences.

The centre has just over 3 000 members and over 800 visitors per day. During 2015 the company started a careful expansion when a satellite facility opened in Sannegårdshamnen on the Göta Älv North Shore.

The investment opportunity for Pegroco arose when the bath’s CEO was planning a management buy-out from the owner, Feelgood Svenska AB, and needed a partner to realize the transaction. Pegroco’s analysis showed that Hagabadet was a culture bearer and that the brand, with its history, had a unique position within spa and training in Gothenburg. This has enabled Hagabadet to establish itself in a premium position on the market with a more loyal customer clientele. Furthermore, the company had a CEO with a large stake in the company and therefore has a large incentive to grow its value. Based on these fundamentals Pegroco believed that the company could grow and also improve profitability. Hagabadet’s focus is now on increasing profitability by increasing the number of members and by increasing the utilization of the facilities.

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