Orangetheory Fitness announced that an affiliate of Roark Capital Group, an Atlanta-based private equity investment firm that focuses on investing in the franchise industry, has become a strategic investor through a growth equity investment in the company. Terms were not disclosed.
“We decided to engage Roark as a strategic investor to support us as we continue to experience rapid growth in the U.S. and internationally, as well as expand our product and service quality,” said Dave Long, co-founder and chief executive officer of Orangetheory Fitness. “Our relationship with Roark will strengthen our mission to deliver proven fitness results for a healthier world.”
The Orangetheory Fitness management team, including Long, will remain unchanged and continue to lead the company with the equity investment. Roark Capital managing directors, Erik Morris and Steve Romaniello, will join the Board of Directors and provide strategic counsel and support.
“The founders and leadership team at Orangetheory have built a terrific brand that is generating amazing results,” said Morris. “Their culture and commitment to franchisee success aligns with Roark’s core philosophies. The corporate team, area representatives and franchisees are incredibly talented and strong, and we’re excited to help contribute to the brand’s success.”
Roark Capital Group is a private equity firm that focuses on investing in franchise and multi-unit business. Its affiliates have invested in over 50 franchise/multi-unit brands with approximately 22,000 units in 75 countries. Its portfolio of brands operate in the fitness, wellness, restaurant, retail, consumer and business services sectors. Some of these brands include Massage Envy, Arby’s, Carl’s Jr., Primrose Schools, Batteries Plus and Driven Brands.
In March 2010, Orangetheory Fitness launched its first studio in Fort Lauderdale, Florida. It now has more than 360 studios in 36 states and seven countries,
including U.S., Canada, U.K., Australia, Mexico, Dominican Republic and Colombia.
Piper Jaffray & Company served as the exclusive financial advisor to Orangetheory Fitness.
