HGGC invests in PF Atlantic Holdings

HGGC has made a majority investment in PF Atlantic Holdings, a Planet Fitness franchisee.

HGGC has made a majority investment in PF Atlantic Holdings, a Planet Fitness franchisee. No financial terms were disclosed. In conjunction with the investment, PF Atlantic Holdings is rebranding as Grand Fitness Partners.

PRESS RELEASE

PALO ALTO, Calif., Nov. 18, 2021 /PRNewswire/ — HGGC, a leading middle market private equity firm, today announced it has completed a majority investment in PF Atlantic Holdings, a top-15 franchisee within the Planet Fitness health club system. In conjunction with the investment, PF Atlantic Holdings is rebranding as Grand Fitness Partners. Co-founders CEO David Bidwell and COO Scott Linsky will continue to lead the business and retain a significant minority stake in the business alongside current investor Monogram Capital. Details of the private transaction were not disclosed.

Grand Fitness Partners, headquartered in Toms River, New Jersey, and founded in 2010, is one of the fastest growing franchisees in the Planet Fitness system. Today, the Company owns and operates 42 Planet Fitness health clubs in Florida, California, New Jersey, and Pennsylvania.

“We’re very excited to partner with David and Scott, two tremendous operators, and with Monogram Capital to help accelerate the impressive growth they have achieved at Grand Fitness Partners over the past decade,” said Steven Leistner, a Partner at HGGC. “Grand Fitness Partners has already exceeded pre-Covid membership and revenue figures, representing the team’s strong leadership and resilience through a trying period in the fitness space. We believe in Planet Fitness as a long-term secular health and wellness winner and have great confidence in Dave and Scott’s continued success building a leading platform in the Planet Fitness system.”

Leistner, HGGC Principal Phil Sampognaro, and HGGC President and Co-Founder Steve Young will all join the Board of Directors of Grand Fitness Partners.

“Scott and I are thrilled to welcome HGGC as our new financial partner, as we continue to execute our successful strategy,” said Bidwell. “Our ambitions are high and HGGC’s resources, network, and expertise will ensure that we can capitalize on market tailwinds and seize the substantial opportunity to drive organic growth and expand our footprint.”
Jared Stein, co-founder and partner at Monogram Capital Partners, led the investment for Monogram and will remain on the Board. Stein added, “This partnership is an ideal opportunity to continue the tremendous growth we’ve driven over the past four years with the Grand Fitness team and pull in HGGC, an optimal partner to help further catalyze our expansion in the next chapter ahead. Given our close long-standing relationship with HGGC, we felt they were uniquely capable of bringing additional capital into the business to amplify our new unit growth and serve more members, helping to jointly realize our mission of bringing affordable, non-intimidating fitness to even more people.”

Carlyle’s Global Credit segment and the Private Credit business within Goldman Sachs Asset Management provided financing for the transaction.

About HGGC
HGGC is a leading middle-market private equity firm with over $5.6 billion in cumulative capital commitments. Based in Palo Alto, Calif., HGGC is distinguished by its Advantaged Investing approach that enables the firm to source and acquire scalable businesses through partnerships with management teams, founders and sponsors who reinvest alongside HGGC, creating a strong alignment of interests. Since its inception in 2007, HGGC has completed more than 300 platform investments, add-on acquisitions, recapitalizations, and liquidity events with an aggregate transaction value of over $41 billion. More information, including a complete list of current and former portfolio companies, is available at hggc.com.