Armah Sports buys fitness center equipment worth SAR 1.9M

Logo of Armah Sports Co.

Armah Sports Co. announced today, Oct. 8, the purchase of fitness center equipment worth SAR 1.9 million from Pulse Fitness & Sports Co. that is owned by Vice Chairman and CEO Fahad Alhagbani (a related party).

In a Tadawul statement, the company said the equipment will be used under the "B_FIT" brand that is owned by Armah Sports. The transaction aims to introduce a new category called "B_FIT Studios" to meet the increasing demand for services at women's B_FIT centers.

The deal, signed on Oct. 6, is part of the company's strategic plans to expand its activities and meet the increasing demand for women's B_FIT centers.

The purchase will be financed from Armah Sports' internal cash flows, the company said, adding that the relevant financial impact will be reflected in Q4 2024 results.

The transaction price was determined based on reports from two licensed valuators, and there are no preferential terms for the related party. In addition, the deal is contingent on the property owner's approval for transferring the lease contract of the fitness center currently operated by Pulse Sports to Armah Sports.

The purchase will also be included in the annual report and financial statements of related party transactions, the statement noted, adding the deal will be presented for approval of the next general assembly.