(Yicai Global) Sept. 5 -- Chinese sportswear maker and distributor Guirenniao Co. [SHA:603555] has ended its restructuring plan after its decision to abandon plans to acquire Shanghai-based Will's Gym. The two parties were unable to agree key terms such as transaction consideration and payment method, Guirenniao said in a press briefing on Sept. 4.

Guirenniao first announced plans to buy a 100-percent stake in the gym chain in December 2016. The firm then proposed a share issuance program at CNY24.05 (USD3.67) per share and cash payment to fund the takeover. The deal valued Will's Gym at CNY2.7 billion.

The fitness chain, founded in 1996, focuses on operating its fitness clubs and derives most of its revenue from gym brands. Its fitness clubs own five key brands including Will's, Will's Elite and W-Yoga, most of which are located in first-and second-tier Chinese cities, such as Shanghai, Beijing, Chongqing and Hangzhou.

The chain has 147 clubs across China, and had accrued more than 800,000 members as of the end of 2016. The company achieved revenue of CNY742 million (USD112 million) last year, while net profit was around CNY42.01 million (USD6.37 million).

Guirenniao, founded in 1987, has its own brand focused on leisure sportswear. It started to shift from the traditional sportswear industry to diversified sports business following its listing in 2014. The failure to acquire Will's Gym may be the firm's the biggest setback in its diversification efforts so far.

Shares in Guirenniao were also unexpectedly suspended on Sept. 4, and will remain suspended for up to three trading days effective Sept. 5.