Private equity giant TPG is exploring the sale of Crunch Fitness, a gym chain that could be valued at over $1.5bn, including debt, according to a report by Reuters citing sources familiar with the matter.
TPG, which acquired Crunch through its arm that specialises in small- and mid-sized acquisitions, is working with investment bank Jefferies to prepare for a potential sale. The process could commence in the first half of 2025, one of the sources said.
Neither TPG, Jefferies, nor Crunch Fitness responded to requests for comment.
According to one Reuters source, Crunch Fitness may attract interest from other private equity firms, and that based on industry benchmarks, the gym chain could be valued at more than 15 times its estimated $100m annual earnings before interest, taxes, depreciation, and amortisation (EBITDA).
The fitness and wellness sector has long been a favourite among private equity investors due to its steady cash flows from subscription-based memberships and the scalability offered by franchising opportunities.
Recent transactions include L Catterton’s acquisition in September of Pilates chain Solidcore for $600–$700m, plus 26North Partners deal to buy OneLife Fitness in October.
Founded in 1989 as a modest basement gym in New York City’s Greenwich Village, Crunch Fitness has grown into a global brand, and now serves approximately 2.5 million members across more than 460 locations worldwide, including in the US, Australia, Canada, Costa Rica, Portugal, Puerto Rico, and Spain.
