PE Tech Report


Like this article?

Sign up to our free newsletter

TowerBrook completes acquisition of ECP-PF Holdings Group

TowerBrook Capital Partners has completed the acquisition of ECP-PF Holdings Group, (ECP-PF) from Exaltare Capital Management, a Boston-based private equity firm. 

ECP-PF is one of the largest developers and operators of fitness clubs under the Planet Fitness brand (NYSE: PLNT), serving approximately 600,000 members in six US states and three Canadian provinces.

Planet Fitness is one of the largest and fastest-growing franchisors and operators of fitness clubs in North America. As of 30 June, 2021, Planet Fitness had more than 14.8 million members and 2,170 clubs in the United States, Puerto Rico, Canada, Panama, Mexico, and Australia. The company’s mission is to enhance people’s lives by providing a high-quality fitness experience in a welcoming, non-intimidating environment, called the Judgement Free Zone.

Jonathan Bilzin, Co-President and Managing Director of TowerBrook, says: “We are excited to partner with a leading franchisee of Planet Fitness. ECP-PF has a strong track record of growth, and the platform’s mission to provide inclusive, affordable fitness aligns well with TowerBrook’s purpose driven value creation focus and Responsible Ownership. The business is well-positioned to continue to expand that mandate to meet the growing demand for new high value, low price fitness clubs across North America.”

David Humphrey, Chief Executive Officer of ECP-PF, adds: “This transaction and partnership with TowerBrook will allow ECP-PF to accelerate our development and acquisition of new club locations, further expand our geographic footprint, and continue to refine our operations. TowerBrook is an ideal partner to help drive ECP-PF through its next phase of growth.”

As part of the transaction, Omar Simmons, Founder and former Executive Chairman of ECP-PF and Managing Director of Exaltare Capital Management, will retain a stake in the business and stay on the Board of Directors.

Simmons says: “I am extremely proud of the business we have built over the last nine years and am excited to stay involved, as both an investor and Board member. I believe adding TowerBrook as a partner is a pivotal next step in our evolution as ECP-PF continues to grow its platform and fulfil and extend its mission: to serve people of all fitness levels in an affordable, inclusive, and welcoming environment.”

“We are looking forward to working with David and Omar to continue growing the platform,” says Michael Recht, Managing Director at TowerBrook. “ECP-PF has established an effective model for growth through organic club development and M&A that will facilitate continued expansion with the additional resources and operational expertise that TowerBrook will provide.”

Brightwood Capital Advisors provided the financing for the transaction. Financial terms of the transaction were not disclosed.

Exaltare Capital Management was advised by Sperry Mitchell and DLA Piper. TowerBrook was advised by Goodwin Procter LLP, Lathrop GPM and Fifth Third Securities.

Like this article? Sign up to our free newsletter