Private equity funds managed by Angelo, Gordon & Co have completed the sale of Crunch Fitness (Crunch) to TPG Growth, a middle market and growth equity platform of alternative asset firm TPG. Terms of the transaction have not been disclosed.
Crunch is a health and fitness company that owns, operates, and franchises fitness centres serving over 1.3 million members across the United States, Australia, Canada, and Spain. Founded in 1989 in New York City, the Company has been committed to providing members with high quality training and service in convenient locations and at an affordable price for more than 30 years. Crunch is led by Chairman Mark Mastrov and CEO Jim Rowley, two industry veterans who previously built and ran 24 Hour Fitness.
“The Angelo Gordon team has been instrumental in growing our Company over the past decade,” says Mastrov. “With their backing and guidance, we have developed our highly successful franchise business, expanded our global footprint, and built a flexible model that enables the Company to adapt to member preferences and capitalise on momentum in the fitness space.”
Rowley adds: “I’d like to thank Art, Harish, and the entire Angelo Gordon team for their steadfast support over the years. Together, we have ensured that Crunch is well positioned for continued growth, and we look forward to working with the TPG team as we embark on our next chapter.”
Angelo Gordon acquired Crunch with Mastrov and Rowley in 2009. Since that time, the Crunch and Angelo Gordon teams have worked together to grow the Crunch business from 15 locations in the United States, to over 300 locations worldwide.
“Over the past ten years, we have worked hand-in-hand with Mark and Jim – who expertly tapped into their expansive network of industry partners – to establish Crunch as a leader in the health and fitness market,” says Art Peponis, Head of Private Equity at Angelo Gordon. “Their passion for providing the innovative programming and best-in-class fitness experience that members have come to know and love has made Crunch an iconic brand.”
“Crunch’s rapid growth is a testament to the hard work and dedication of the entire management team, including Keith Worts and Ben Midgley, who have been key in ensuring that Crunch offers a unique, highly compelling value proposition for both members and franchisees,” says Angelo Gordon Managing Director Harish Nataraj. “Consumer interest in fitness and wellness is at an all-time high, and TPG is the right partner to support Crunch as they continue executing on that opportunity and accelerating the growth of the Crunch brand.”
Citigroup Global Markets Inc. served as exclusive financial advisor to Crunch, and Akin Gump Strauss Hauer and Feld LLP and AJB Law Group, PC served as legal advisors.
