TSG Consumer Partners, a specialist private equity firm focused exclusively on the consumer sector, has signed a definitive agreement to acquire EoS Fitness (EoS), a U.S. operator of “High Value Low Price” (HVLP) gyms.
EoS Chief Executive Officer Rich Drengberg will reportedly continue to head the company with his tenured leadership team and retain a vested interest in the go-forward company.
TSG Consumer describes EoS as a “rapidly growing gym chain” with over 175 gyms in operation and “on the way” nationwide.
“The company is redefining the fitness experience for consumers and their communities by providing spacious facilities, cutting-edge equipment, diverse class offerings and an emphasis on cleanliness and friendliness, all at affordable prices,” TSG said in a media release.
The PE firm stated that EoS is led by Drengberg, with a team of industry veterans.
“Partnering with EoS at this pivotal point in their journey opens exciting avenues for growth and innovation,” said Michael Layman, managing director, TSG Consumer. “With the help of their outstanding team, EoS has built a compelling brand that resonates with a broad member base, offering a low-priced premium experience at a time when more people than ever are focused on fitness.”
“On behalf of my colleagues at BRS, we’d like to extend our congratulations to the EoS team,” said Rashad Rahman, managing director at BRS & Co., which initially invested in EoS in 2014. “We have worked closely alongside Rich and his leadership team to help scale the company into the fitness leader it is today, and we look forward to witnessing EoS’ continued growth and success in this next chapter.”
For EoS, they have a new partner with broad roots in the active lifestyle market. The firm owns CorePower Yoga after acquiring the business from L Catterton in 2017, and has invested in Canyon Bicycles, Revolve, Planet Fitness, and Backcountry over the last 10 years.
“We are honored to partner with TSG Consumer, a firm that shares our vision to make high-quality fitness available to everyone,” said Drengberg. Their deep experience partnering with leading brands in the fitness industry and helping them deliver long-term value to their customers makes them an ideal partner for our next chapter. Importantly, TSG Consumer shares our commitment to innovation, continuous improvement and the evolution of our offering.”
Drengberg also thanked Bruce Bruckmann and Rashad Rahman of BRS for their 11-year partnership, which has been the majority partner for the EoS business.
“With TSG Consumer’s support, we look forward to expanding our footprint while delivering exceptional value, experiences and a sense of community to our more than 1.5 million loyal members nationwide,” the CEO said.
“EoS is well known for its ability to deliver value without compromise,” said Adam Hemmer, managing director, TSG Consumer. “Their company-owned model enables best-in-class operations across locations, providing consumers with a high-quality and consistent experience that they love and trust. We’re excited to bring our resources to support their mission to create loyal, lifelong fans and exercise practitioners.”
Founded in 1986, TSG Consumer Partners, LP is a consumer-focused private equity firm with approximately $14 billion in assets under management.
Ropes & Gray LLP provided legal counsel to TSG Consumer. Piper Sandler & Co. served as the lead financial advisor to EoS, with Robert W. Baird & Co. also acting as financial advisor. Milbank LLP served as EoS’ legal counsel. The transaction is subject to customary closing conditions and regulatory approval.
Image courtesy EoS Fitness
