Gyms are on the block.
What’s happening: Private equity firm TPG hired investment bank Jeffries to explore a sale of Crunch Fitness in a deal that could fetch over $1.5B, per Reuters.
Crunchtime. Acquired out of bankruptcy in 2009, Crunch now counts 3M members across 470+ clubs in North America, Australia, Spain, and Portugal — while notching $1B+ in annual revenue.
With plans to open 100+ sites per year over the next five years, including more international markets, its growing business has triggered a recent PE rollup of its largest franchise groups.
Buy & build. With the fitness industry outperforming the market, gyms are changing hands.
- L Catterton acquired [solidcore], valuing the brand between $600–700M.
- Josh Harris-founded 26North bought Onelife Fitness from Delos Capital.
- TZP Group is testing the waters on Lift Brands, owner of Snap Fitness.
Bolstered with cash, private equity funding is fueling expansion, with Equinox landing $1.8B.
Meanwhile, VivaGym became the fourth-largest operator in Spain following a Providence Equity-backed acquisition spree, and Europe’s largest chain Basic-Fit is being urged to sell.
TBD: Crunch’s sale process is expected to ramp up early next year, but with the whole category undergoing a shift, a lot can change.
