Planet Fitness franchisee, National Fitness Partners (NFP), announced the acquisition of 16 Planet Fitness clubs, including 15 locations in the Cleveland and Akron-Canton, OH markets and one location in central Pennsylvania from two different sellers.
The transaction, which was financed with junior capital from funds managed by the Credit Group of Ares Management Corporation, expands NFP’s footprint, which now includes 94 Planet Fitness clubs with exclusive rights to develop 40 plus additional clubs in Pennsylvania, Ohio, Delaware, North Carolina, and South Carolina.
NFP is a portfolio company of Argonne Capital Group, LLC, an Atlanta-based private investment firm.
“We remain bullish on the near-term recovery prospects and long-term growth of the Planet Fitness brand, as encouraging membership and utilization trends continue to point to a successful emergence from the COVID-19 pandemic,” said Stephen Kindler Jr., president and CEO of National Fitness Partners. “This significant investment will expand our reach into important new markets and strengthen our efforts to ensure more people have access to low-cost fitness options, as we believe regular exercise plays an essential role in enhancing the physical, mental and emotional wellbeing of our members.”
“This transaction is a unique opportunity that will enable NFP to strengthen its base business and diversify its existing geographic footprint and cash flow while positioning the company for considerable growth opportunities as the COVID-19 pandemic recedes,” said Layton Grisette, managing director of Argonne Capital.
This transaction is the seventh acquisition for NFP, which was founded in 2016 in partnership with Argonne to acquire 10 Planet Fitness locations in central Pennsylvania from the Kindler family. The Kindlers have been involved in the fitness industry since 1967, and legacy Planet Fitness franchisees since 2005, when the family converted two gyms in Harrisburg, PA, to Planet Fitness.
Photo courtesy Planet Fitness