In a massive market shake-up, alternative asset firm TPG has acquired multi-national gym franchise Crunch Fitness. The Crunch Fitness acquisition sees TPG’s growth-equity platform assume control of the chain’s corporate-owned outlets, in addition to its global franchising business.
Jim Rowley, CEO of Crunch said the deal with TPG reflected the hard work of franchise partners and the executive team alike.
“The investment from TPG is a testament to Crunch’s distinct brand, great facilities, and strong management and club teams,” Rowley said.
“Under the leadership of Ben Midgley and Keith Worts, we’ve been able to create a fun, team-focused, and fitness-minded atmosphere that our members, team, and franchise partners embrace and enjoy.”
Crunch Fitness background
Founded in New York City in 1989, Crunch has experienced steady growth across major global markets. The fitness chain currently owns, operates and franchises more than 300 gyms in the US, Canada, Spain, with an emerging presence here in Australia.
TPG’s Crunch Fitness acquisition sees the brand prepping for a significant international growth period, Rowley revealed.
“With the support of our new partners at TPG, we’re well-positioned to accelerate this offering. We look forward to working together to enhance our capabilities and expand Crunch’s footprint across the globe,” he said.
That expansion looks certain to hit Australia. TPG chief investment officer, Jonathan Coslet revealed the brand is actively pursuing further international franchise growth.
“We’re excited to partner with the Crunch team as they look to continue their growth, including their global franchise network,” Coslet said.
Crunch Fitness acquisition outcomes
The Crunch Fitness acquisition follows a series of consumer-focused investments for TPG.
In 2015, the firm partnered with Life Time, a comprehensive athletic lifestyle resorts chain focused on healthy living, healthy ageing, and healthy entertainment.
The Crunch Fitness acquisition sees TPG looking to bulk up the gym chain’s already 1.3 million strong worldwide member network.
“Consumers across every age group are prioritising health and wellness more than ever before. Crunch is capturing that consumer interest by providing a unique, high-quality and affordable gym experience,” said Chris Kelly of TPG Growth.
“With more than 300 locations, the company has created a strong infrastructure for continued, meaningful growth.”