LNK Partners, a private equity firm focused on investing in the consumer/retail sector, has teamed with management to acquire Fitness Connection, a low-price, high-value chain of health clubs.
The size of LNK’s investment and other terms were not disclosed.
Fitness Connection’s strategy combines value pricing of USD9.95 to USD19.95 per month and no long-term contract obligation with a full range of amenities and services including personal training, kid’s club, group exercise classes, and access to swimming pool, basketball, racquetball, women’s only areas, cardio movie theatre, sauna, steam room, and tanning facilities. The company currently has 28 locations in North Carolina, Texas, and Nevada, which typically range from 35,000 to 60,000 square feet.
LNK’s investment in Fitness Connection is expected to enable the company to accelerate its expansion in existing and new markets. In addition to providing capital, three of LNK’s partners will join Fitness Connection’s board of directors. LNK’s partners have operated or invested in consumer companies such as Staples, Quaker Oats, Pepsi, Gatorade, Life Time Fitness, Levi Strauss, PVH/Calvin Klein/Tommy Hilfiger, Campbell’s, Pepperidge Farm, Godiva, and Yankee Candle.
"We are excited about our partnership with LNK for the next phase of Fitness Connection’s growth, further expanding our low-price, high-value chain," says Jeff Skeen, chief executive of Fitness Connection. "It is an exciting time for our team as we join up with such a successful private equity firm in retail and consumer. Now, we are very well positioned to continue to grow our brand on a national basis."
David Landau, a partner of LNK, says: "We back strong management teams who are building outstanding consumer and retail businesses. Fitness Connection’s management has more than 85 years of direct fitness industry experience, has been involved in the successful operation and acquisition of more than 100 health clubs, and is a recognised leader in the fitness industry."
Fitness Connection was owned by WestView Capital Partners, a private equity firm focused exclusively on lower middle market companies.
Fitness Connection’s investment advisor was Robert W. Baird & Co. Additional financing for the transaction was provided by Golub Capital. Legal advisors were Kirkland & Ellis for LNK and Latham & Watkins for the company.
