Icon Health & Fitness announced a $200 million growth investment led by L Catterton, a global consumer-focused private equity firm, and joined by existing investor Pamplona Capital Management.
Icon owns the fitness brands NordicTrack, ProForm and Freemotion, which offer connected fitness membership services powered by iFit. Icon said it’s profitable with revenue exceeding $1 billion in the last 12 months (ending September 30, 2020),
The latest round values Icon at more than $7 billion and is a precursor to a potential initial public offering within the next year, persons with knowledge of the matter told Bloomberg. Icon, based in Logan, UT, also makes treadmills, rowers, ellipticals, and strength-training machines.
The investment will further accelerate Icon’s growth strategy of delivering its range of interactive fitness products connected by iFit, the company’s patented content technology and media platform, with approximately 700,000 paid subscribers.
Scott Watterson, founder, chairman and CEO of Icon said: “Health and fitness have never been more important to consumers globally, and we are seeing explosive growth across our subscription software and fitness equipment businesses. We saw this fast-growing demand going into 2020, and this has accelerated sharply as people’s desire to stay healthy has intensified. We welcome L Catterton onboard at this incredibly exciting time in our company’s history. L Catterton has an exceptional history of success investing in consumer and fitness businesses. I look forward to working alongside Scott Dahnke and his team as we continue to accelerate growth across our various platforms and distribution channels.”
He added, “Icon reaches the fitness industry’s largest total addressable market in North America, Europe and around the world. The vast and expanding global health and fitness market presents a powerful platform for continued growth. This funding will further strengthen our leading position in connected fitness and deliver on our mission to help consumers of every demographic and fitness level pursue and achieve their health and fitness goals.”
Scott Dahnke, global Co-CEO of L Catterton said: “Over our 31-year history, L Catterton has had extensive experience partnering with leading fitness concepts and conducted proprietary research to understand what the consumer wants. We have long admired Icon as a pioneering health and fitness giant, with a core focus on technology, longstanding track record of innovation, and a proven, profitable growth model. As people around the world increasingly seek out new, immersive ways to exercise and stay healthy, Icon’s heritage, offerings, and scale are true differentiators.
“The company’s broad range of products across price points has democratized fitness, making it more accessible to everyone, everywhere. Their established and Iconic brands such as NordicTrack and now increasingly iFit, with its significant subscriber growth, set Icon apart. We are excited to partner with Scott and his exceptional management team in this next phase of their exciting growth journey.”
The private equity firm, backed by luxury-goods giant LVMH, has made investments in companies including Peloton, Hydrow, Core Power Yoga, Pure Barre, retailer Sweaty Betty, and Latin America-focused gym company Bodytech.
Photo courtesy Icon Health & Fitness