03 Jul 2019
Crunch gets investment from TPG private equity
BY Andy Knaggs
Crunch Fitness could double in size over the next five years, according to CEO Jim Rowley, following investment in the fitness chain by private equity group TPG.
The company owns, operates and franchises more than 300 fitness centres across the US, Canada, Australia and Spain, serving 1.3 million members.
It has a franchise division with 88 operators, as well as its Crunch-owned Signature clubs in urban markets such as New York, Miami, Los Angeles and San Francisco. Both sides of the business are set for growth over the next three to five years according to Rowley.
"The investment from TPG is a testament to Crunch's brand, facilities, and management and club teams," said Rowley. "We've been able to create a fun, team-focused, and fitness-minded atmosphere that our members, teams and franchise partners embrace and enjoy."
Rowley and chair, Mark Mastrov, acquired Crunch with the backing of the private equity arm of Angelo Gordon in 2009, and began franchising the brand in 2010. Previously, the two had built the 24 Hour Fitness brand.
Crunch's business model looks to provide high-quality cardio and strength equipment, dynamic group classes and personalised training programmes at a compelling price point. The company’s Signature clubs deliver a premier experience, with expanded facilities, upgraded amenities and dedicated studios for RIDE and yoga.
Rowley said the business model wouldn't change with TPG backing, which he says comes as validation that "what we are doing is good work".
Jonathan Coslet, chief investment officer at TPG, commented: "We partner with great management teams that drive their industry forward, and this team has pioneered a business model that has transformed Crunch into the innovative and inclusive community it is today. We're excited to partner with the Crunch team as they look to continue their growth, including their global franchise network."
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