Orangetheory Fitness, the U.S. boutique fitness studio franchise based in Boca Raton, FL, and Self Esteem Brands, which bills itself as “the world’s largest portfolio of purpose-driven health and personal care franchise brands,” announced an intent to merge as equals in an all-stock transaction, forming a new company with one of the largest footprints in the fitness, health and wellness services space worldwide.
Through a combined portfolio of brands, including Orangetheory Fitness, Anytime Fitness, Waxing the City, Basecamp Fitness/SUMHIIT Fitness, The Bar Method, and Stronger U Nutrition, the new company will represent $3.5 billion in systemwide sales and approximately 7,000 franchise locations across 50 countries and territories on all seven continents.
“From our simple beginnings in 2002 with the first Anytime Fitness club, we’ve enjoyed rapid growth worldwide thanks to both the power of small-business franchising and our mix of brands that meet the ever-increasing demand for more holistic and personalized health and wellness services,” said Chuck Runyon, co-founder of Anytime Fitness and CEO of Self Esteem Brands. “With this merger, we will enrich even more people around the world through franchising, community and the services they need—now and in the future—on their personal health and wellness journeys.”
The merger will result in a significant international scale for the new company, with continued investments in data and analytics, technology, products, and services that will “help franchisees across its brands outpace growing consumer demand for holistic health and wellness services.”
“As we start a new chapter, Orangetheory will continue to build on our legacy of innovation and transformation,” said Dave Long, co-founder and CEO of Orangetheory Fitness. “Today, with this groundbreaking agreement, we are one step closer to setting a new benchmark for what it means to be a global leader in fitness, health and wellness. We are excited about what our combined companies will be able to accomplish together to capture an increasing market share, unlock future growth and pioneer a healthier tomorrow for consumers around the world.”
Roark Capital, a private equity firm focusing on franchise and multi-unit businesses, has invested in Self Esteem Brands and Orangetheory Fitness since 2014 and 2016, respectively. “The founders and leadership teams at Self Esteem Brands and Orangetheory have built terrific brands, each with a long history of remarkable growth. We’re excited to continue to partner with the teams to create a leading global franchise platform in the health and wellness sector,” said Erik Morris, chief investment officer.
The timing of the merger is subject to regulatory approvals and customary closing conditions.
Photo courtesy Orangetheory
