Planet Fitness, Inc. on Tuesday, January 11, signed a definitive agreement to acquire Sunshine Fitness Growth Holdings, LLC, which owns and operates more than 100 Planet Fitness clubs in the Southeastern United States for $ 800 million in cash and stocks, according to a press release.
Planet Fitness will finance the cash portion of the acquisition through the sale of securitized tickets and available cash. The deal is expected to be finalized in the first quarter of 2022.
Sunshine Fitness was the first franchisee of the Planet Fitness system and has been backed by TSG Consumer Partners since 2017. It operates 114 fitness clubs in Alabama, Florida, Georgia, North Carolina and South Carolina, which will join the Planet Fitness portfolio.
Shane McGuiness, co-founder and CEO of Sunshine Fitness and owner and operator of the Planet Fitness system for nearly 20 years, will oversee the operations of the combined company.
“We are delighted to announce the acquisition of Sunshine Fitness, one of our most successful franchisees in the system, with locations that will provide geographic diversity to our current portfolio of corporate stores and that are in markets with a long track for future store development, “said Chris Rondeau, CEO of Planet Fitness, in the joint announcement.
“Owning corporate stores is an important part of our strategy because it gives us both relevance and credibility when making decisions that impact the entire system. In addition, our corporate team is joined by a management team that has built some of the most profitable store-level locations in our system, which will enhance the leadership and capabilities of our corporate store, ”a- he declared.
Planet Fitness will have more than 200 corporate stores when the deal is finalized.
“Partnering with TSG has been an incredible experience,” said McGuiness. “Their support for our business and our growth has never wavered, and this has led to this next exciting moment in our evolution as an organization. “
Planet Fitness ended fiscal 2021 with 15.2 million members, up 1.7 million members from the same period a year earlier. The chain opened 132 new stores in 2021, ending the year with 2,254 locations worldwide.
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In November, Rondeau told analysts that Gen Z overtakes other age groups in enrollment, which he said “is notable because only half of the generation is even old enough. to join her “.