TSG Consumer Partners, a leading specialist private equity firm focused exclusively on the consumer sector, today announced it has signed a definitive agreement to acquire EōS Fitness, a leading U.S. operator of HVLP gyms. EōS Chief Executive Officer Rich Drengberg will continue to head the company with his tenured leadership team and will retain a vested interest in the go-forward company.
EōS is a rapidly growing gym chain with more than 175 gym locations open and on the way across the U.S. and a goal to make fitness accessible to everyone. The company is redefining the fitness experience for consumers and their communities by providing spacious facilities, cutting-edge equipment, diverse class offerings and an emphasis on cleanliness and friendliness, all at affordable prices. EōS is led by Drengberg, with a deep, cohesive team of industry veterans at the helm.
“We’re honored to partner with TSG Consumer, a firm that shares our vision to make high-quality fitness available to everyone,” said Drengberg in a press release. “Their deep experience partnering with leading brands in the fitness industry and helping them deliver long-term value to their customers makes them an ideal partner for our next chapter. Importantly, TSG Consumer shares our commitment to innovation, continuous improvement and the evolution of our offering. I’d also like to extend my thanks to Bruce Bruckmann and Rashad Rahman of BRS for 11 years of partnership, as well as the incredible EōS leadership team and our team members, whose hard work and dedication have made this announcement possible. With TSG Consumer’s support, we look forward to expanding our footprint while delivering exceptional value, experiences and a sense of community to our more than 1.5 million loyal members nationwide.”
Michael Layman, the managing director at TSG Consumer, said partnering with EōS at this pivotal point in their journey opens exciting avenues for growth and innovation.
“With the help of their outstanding team, EōS has built a compelling brand that resonates with a broad member base, offering a low-priced premium experience at a time when more people than ever are focused on fitness,” said Layman. “We look forward to supporting EoS through their next phase of growth.”
Adam Hemmer, the managing director at TSG Consumer, said EōS is well known for its ability to deliver value without compromise.
“Their company-owned model enables best-in-class operations across locations, providing consumers with a high-quality and consistent experience that they love and trust,” said Hemmer. “We’re excited to bring our resources to support their mission to create loyal, lifelong fans and exercise practitioners.”
Rashad Rahman, the managing director at BRS & Co, said on behalf of his colleagues at BRS, they’d like to extend their congratulations to the EōS team.
“Since originally investing in the business in 2014, we have worked closely alongside Rich and his leadership team to help scale the company into the fitness leader it is today,” said Rahman. “We look forward to witnessing EōS’ continued growth and success in this next chapter.”
Ropes & Gray LLP provided legal counsel to TSG Consumer. Piper Sandler & Co. served as the lead financial advisor to EōS, with Robert W. Baird & Co. also acting as financial advisor. Milbank LLP served as EōS’ legal counsel. The transaction is subject to customary closing conditions and regulatory approval.
