Delos Capital and HRS Management, the family office of Apollo Management co-founder Joshua Harris, have made an investment in US Fitness, an operator of health and fitness clubs. No financial terms were disclosed.
MCLEAN, Va., May 29, 2018 /PRNewswire/ — US Fitness, the leading operator of high amenity, high value health and fitness clubs across the Mid-Atlantic and Southeast United States, announced that it has received a majority investment from Delos Capital, a leading private equity firm, with HRS Management, the family office of Apollo Management co-founder Joshua Harris, investing alongside Delos.
Co-Chairmen Kirk and John Galiani and President John Cristiano continue to own a significant interest in the company, and together with senior management, will drive the strategic direction and day-to-day operations of US Fitness. New Evolution Ventures has sold its interest in US Fitness as part of the transaction. The financial terms of the transaction were not disclosed.
“We are very proud of the business we have built at US Fitness, and we could not be more excited about our future with Delos and HRS as we accelerate our growth,” said Kirk Galiani. The US Fitness portfolio includes 46 club locations encompassing a total of over 2.5 million square feet. “The success of US Fitness is driven by many passionate people dedicated to inspiring members and delivering the ultimate fitness experience. We are thrilled to work with our new partners to bring our industry leading clubs to more communities around the country,” added John Galiani.
US Fitness will be opening six new clubs in 2018 in Maryland, Coastal Virginia, and Atlanta, and with the new investment, the company plans to add five to six clubs each year over the next five years. The company’s brands include 30 Onelife Fitness, 11 Sport & Health, and five Crunch Fitness locations. With these expansion plans, US Fitness expects to create over 2,500 new jobs over the next five years, and will invest $50 million in club improvements, new equipment, and new clubs over the next two years.
“Delos could not be more pleased to partner with US Fitness and HRS in this investment,” said Matthew Constantino, Founder of Delos Capital. “By all metrics, US Fitness represents a best-in-class company and management team, and together we have identified a host of exciting opportunities to drive further value.”
Prior to founding US Fitness, Kirk and John Galiani owned Gold’s Gym International. In just 5 years, the brothers grew the largest full-service health club chain in the world by adding 200 new franchise and 38 company-owned locations before selling the company.
About Delos Capital
Delos Capital, founded in 2013, is a private equity firm based in New York City that partners with strong management teams and strategic owners in management buyouts, recapitalizations, and growth investments.
About HRS Management
HRS Management is a family office founded by Joshua Harris, co-founder of Apollo Global Management and a principal owner of the Philadelphia 76ers of the National Basketball Association, the New Jersey Devils of the National Hockey League, and Crystal Palace Football Club of the British Premier League.
About US Fitness
US Fitness’ origins began with a passion to develop the most modern and inclusive health club company in the country. The Galiani Brothers, John Cristiano and their management team have grown US Fitness to be one of the largest health club companies in the US. US Fitness operates primarily under the Onelife Fitness brand – large format fitness clubs designed to offer unparalleled value to their members, providing access to over 50,000 square feet of the latest fitness equipment, cutting edge group and personal training programs, full length pools, basketball courts, and spa facilities. US Fitness’ proprietary fitness offerings include Zone 4 Fitness, Explosive Performance, APEX, and BarreOne, which deliver the experience and performance of leading boutique fitness studios at significantly discounted pricing. The company also operates Sport & Health – high-end health clubs with state-of-the-art fitness facilities and luxurious day spas in the Washington, DC Metro Market – and is an area development franchisee of Crunch Fitness.