Orangetheory Fitness and Self Esteem Brands have announced an intent to merge as equals in an all-stock transaction, forming a new company with one of the largest footprints of fitness, health and wellness services in the world.
Through a combined portfolio of world-class brands: Orangetheory Fitness, Anytime Fitness, Waxing the City, Basecamp Fitness/SUMHIIT Fitness, The Bar Method and Stronger U Nutrition, the new company will represent $3.5 billion in systemwide sales and approximately 7,000 franchise locations across 50 countries and territories on all seven continents.
“From our simple beginnings in 2002 with the first Anytime Fitness club, we’ve enjoyed rapid growth worldwide thanks to both the power of small-business franchising and our mix of brands that meet ever-increasing demand for more holistic and personalized health and wellness services,” said Chuck Runyon, the co-founder, Anytime Fitness and CEO, Self Esteem Brands. “With this merger, we will enrich even more people around the world through franchising, community and the services they need — now and in the future — on their personal health and wellness journeys.”
The merger will result in significant international scale for the new company, with continued investments in leading-edge data and analytics, technology, products and services that help franchisees across its brands outpace growing consumer demands for holistic health and wellness services.
“As we start a new chapter, Orangetheory will continue to build on our legacy of innovation and transformation,” said Dave Long, the co-founder and CEO of Orangetheory Fitness. “Today, with this groundbreaking agreement, we are one step closer to setting a new benchmark for what it means to be a global leader in fitness, health and wellness. We are excited about what our combined companies will be able to accomplish together to capture an increasing market share, unlock future growth and pioneer a healthier tomorrow for consumers around the world.”
Roark Capital, a private equity firm that focuses on investing in franchise and multi-unit businesses has been invested in Self Esteem Brands and Orangetheory Fitness since 2014 and 2016, respectively.
“The founders and leadership teams at both Self Esteem Brands and Orangetheory have built terrific brands, and each have a long history of remarkable growth,” said Erik Morris, the chief investment officer of Roark Capital. “We’re excited to continue to partner with the teams to create a leading global franchise platform in the health and wellness sector.”
Timing of the merger is subject to regulatory approvals and customary closing conditions.
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