Roark Capital, an Atlanta-based private equity firm, acquired a majority stake in Fitness Connection from LNK Partners. Fitness Connection has over 500,000 members across its 41 health clubs in Texas, North Carolina, and Nevada. Terms of the transaction were not disclosed.
Founded in 1999, Fitness Connection is a category leader in the “High Value, Low Price” (HVLP) fitness segment, offering the full range of amenities and services of a large, full-service premium club for as low as $10 per month. Memberships include access to state-of-the-art strength/cardio equipment, functional training areas, women’s only workout areas, short-term child care, cycling studios, as well as other amenities and services. In addition, memberships typically include 30+ unique group workout classes including spin, yoga, pilates, kickboxing and high intensity interval training, among the other 50+ classes per week.
“As we embark on the next phase of growth, we could not be more excited about having Roark as our partner to lend their guidance and expertise in multi-unit, consumer-facing investments. We look forward to working closely with the Roark team as we continue to execute our national growth strategy of making high value, affordable fitness accessible to all,” said Phil Howard, CEO of Fitness Connection.
Erik Morris, senior managing director and co-chief investment officer at Roark, said, “Fitness Connection is a terrific concept with a phenomenal value proposition. We are excited to be partnering with Phil and his team as they continue to grow the business.”
Roark Capital was advised by Paul, Weiss, Rifkind, Wharton & Garrison LLP. Fitness Connection was advised by Jefferies LLC, Piper Jaffray & Co. and Kirkland & Ellis LLP.
