12 Mar 2024
UPDATE: Self Esteem Brands and Orangetheory are seeking a CEO for their merged business
BY Liz Terry
This story was updated at 14.00GMT on 14 March 2024 and 16.00 GMT on 15 March 2024
Self Esteem Brands (SEB) and Orangetheory, which announced a ‘merger of equals’ on 29 February, have told HCM they've begun the search for a new CEO of the combined business – the name of which has yet to be revealed.
HCM understands that upon their appointment, the founders of SEB – Chuck Runyon and Dave Mortensen – will stand down from their executive positions and take up places on a seven-strong board of directors to work together to drive the growth of the new business.
A spokesperson for Orangetheory today (14 March 2024) told HCM the organisation structure of the new company is still being worked out and that Dave Long will serve in a dual role, continuing as CEO of Orangetheory, while also sitting on the board of the new company. It's not yet clear how Long will function in relation to the CEO of the new business.
This is a change from our original reporting on this story, which said that Long would also relinquish his executive role upon the appointment of the CEO of the newco. We now understand that this is not the case.
It has been confirmed that the seven-strong board of the new company will be composed of:
Chuck Runyon, co-founder and current CEO of Self Esteem Brands
Dave Mortensen, co-founder and current president of Self Esteem Brands
Dave Long, co-founder and CEO of Orangetheory Fitness
David Hardy, Orangetheory Fitness partner and president, Franvest Capital Partners
Kevin Hoffman, managing director, Roark Capital
Erik Morris, chief investment officer, Roark Capital
This is a change from our original reporting which said that the new CEO would sit on the board.
The various parts of the business will continue to function as normal while the merger takes place.
Speaking exclusively in the current edition of HCM, Long said Orangetheory can see demand for up to 10k locations globally for its concept, echoing the position of Dave Mortensen, who told HCM SEB had the same goal (10k locations) in an exclusive interview in 2023.
Although the merger is likely to have counted towards SEB’s target, it still seems the new company will have ambitious growth targets far in excess of 10k locations, with the potential of an IPO at some point in time, although there has been no mention of this yet from either business.
To read HCM’s interview with Dave Long, click here to sign up for a free digital subscription or visit HCMmag.com/archive.
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