A Pilates company run by a husband and wife duo has received a £1.5m equity deal with a major public and private investors.
Reform RX design and sell their own Pilates reformer apparatus, and runs classes in studios and via streaming for clients around the world.
The company’s Pilates reformer has a screen with which users can follow online sessions, and connects to wearables and other technology to provide fitness data.
Yvette and Neal McGaffin have now secured a £1m equity investment from the British Business Bank, alongside other investments from the Clarendon Private Investor Network which brings the total value of the round to £1.5m.
Reform RX say that “there had been little to no innovation in the [Pilates] industry for almost 50 years” and their reformer has “torn up the rulebook.”
It says its mission is to “democratise Pilates and make it available for everyone.”
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Yvette McGaffin said: “We have owned and operated Pilates studios in Belfast and Edinburgh for almost a decade now, but instead of continuing with that model we took some time to step back and evaluate the industry.
“We decided we would create our own reformer and, alongside our brilliant design team, we really immersed ourselves in the design and innovation of our concept which takes some inspiration from Formula One racing cars.
“Coming out of Covid we launched in the US and within two months we had sold out and completed $2.3m in sales.
“We have deals in place with Mandarin Oriental Hotels, The Ned in London and Casa Cipriani in New York as more luxury hotels expand their gym offering in line with guest needs. Our reformers have also been bought by a number of Hollywood stars but unfortunately we can’t reveals those names.
“As our reformer is connected it means we are a hardware, software and media company all rolled into one.
“We create our own content which is recorded monthly from our virtual studio on the Lisburn Road in Belfast and streamed to users all over the world.
“Clarendon told us we have been on their radar for some time now and it was very encouraging to discover that we are both on the same page when it comes to the development of Reform RX.”
From left, Mark Sterritt, British Business Bank with Reform RX founders, Neal and Yvette McGaffin and Claudine Owens from Clarendon Fund Managers
Clarendon Fund Managers is a venture capital fund manager. The Belfast-based firm provides up to £5m in equity stakes in businesses.
Claudine Owens, investment manager at Clarendon, said: “The £1million deal with the Investment Fund for Northern Ireland will serve as a stepping stone for Reform RX to take them to the next level in their growth journey.
“With Neal and Yvette at the helm, Reform RX is an ambitious company, and we share their vision for the future.
“The sleekly designed product will do for Pilates what Peloton has done for cycling and Hydrow has done for rowing, in terms of design, connectivity and providing an immersive full body workout.
“It will be the ‘must have’ piece of equipment for every reformer Pilates enthusiast and studio. This flagship deal will certainly help stimulate growth, expand their team and explore new markets.
“The deal is one of the largest initial investments we have completed in a single NI company here at Clarendon, which is a reflection of the confidence we have in the team at Reform RX. I can’t wait to see how their journey develops from here.”
The British Business Bank is a state-run economic development bank. They provide financing for businesses in need of support.
It ran a number of loan schemes during the pandemic aimed at supporting economic recovery following lockdown, such as the Covid Bounce Back loans.
The Business Bank investment in Reform RX has been made through the Investment Fund for Northern Ireland (IFNI); a £70m fund that offers debt and equity financing to NI businesses.
IFNI offers debt financing of between 25,000 to £2m, and makes equity investments of as much as £5m.
Mark Sterritt, director of the nations and regions investment funds at the British Business Bank, said: “Reform RX has taken their extensive experience in the Pilates industry and applied it to developing something which has the power to transform the whole industry.
“This is an exciting young company with people at the head of it who are passionate about what they do. Developing a connected reformer is a world first and the sales in the US alone demonstrate just how popular it is.
“Northern Ireland has some excellent businesses who put innovation at the heart of everything they do but with the support of the Investment Fund for Northern Ireland, they can really make their mark.”