Buyout firm TPG (TPG) is reportedly exploring the sale of Crunch Fitness, which could value the gym chain at over $1.5 billion, including debt, according to sources familiar with the matter. The deal, managed by investment bank Jefferies (JEF), may launch in the first half of 2025. Crunch Fitness, known for its global footprint and approximately 2.5 million members, has drawn interest from other private equity firms as potential acquirers.
The valuation of Crunch Fitness is expected to exceed 15 times its annual EBITDA, which stands at roughly $100 million. This robust valuation reflects the growing appeal of fitness franchises, bolstered by post-pandemic demand for in-person wellness services. With TPG aiming to maximize returns, the sale could be one of the more prominent transactions in the fitness industry in the coming year.
Market Overview:
- TPG weighs $1.5 billion-plus sale of Crunch Fitness, sources report.
- Crunch Fitness serves around 2.5 million members globally.
- Investment bank Jefferies managing potential sale process.
Key Points:
- Private equity firms seen as potential buyers for Crunch Fitness.
- Valuation based on 15x EBITDA of $100 million.
- Post-pandemic fitness market driving sector-wide interest.
Looking Ahead:
- Crunch Fitness sale process likely to begin in early 2025.
- Private equity competition could push valuation higher.
- Broader industry implications for gym franchise transactions.
As fitness regains prominence in consumer spending, Crunch Fitness has emerged as a lucrative asset in the private equity landscape. TPG's strategic move to sell highlights the resilience of well-positioned gym franchises amid a competitive fitness market.
With growing demand for brick-and-mortar wellness experiences, Crunch Fitness is poised to attract substantial interest. Industry observers will be watching how this potential sale influences valuations and deal activity in the fitness sector over the coming year.
