Revelstoke acquires majority stake in fitness franchisee Empire Portfolio Group

Empire's founder and CEO, Adam Krell, will retain substantial ownership and continue to lead the business after the deal.

Revelstoke Capital Partners acquired a majority stake in Empire Portfolio Group Holdings, a franchisee of Orangetheory Fitness. Empire owns and operates a portfolio of 15 studios and 27 sub-contracted studios across New York, New Jersey and Connecticut. Empire’s founder and CEO, Adam Krell, will retain substantial ownership and continue to lead the business after the deal.

Press Release

Revelstoke Capital Partners (“Revelstoke”), a Denver-based private equity firm, announced it has acquired a majority interest in Empire Portfolio Group Holdings (“Empire” or the “Company”), a leading franchisee and area representative of Orangetheory® Fitness (“Orangetheory”). Empire currently owns and operates a portfolio of 15 Orangetheory studios and 27 sub-franchised studios across New York, New Jersey, and Connecticut.

The investment will support Empire’s new studio growth across the country providing expanded access to Orangetheory Fitness’ trifecta of science, coaching, and technology which leads to enhanced health and wellness for members. Empire’s founder and CEO, Adam Krell, will retain a substantial ownership stake in the business and continue to lead the business going forward.

“We are very excited to partner with Revelstoke for Empire’s next stage of growth,” said Mr. Krell. “Revelstoke has significant experience growing successful multi-site brands, with a particular focus on health and wellness. Their investment in Empire will provide us with the capital and resources to accelerate our de-novo studio expansion and pursue strategic acquisition opportunities, and doing so will create substantial opportunities for growth and career progression and will continue to broaden the positive impact that we make on the communities in which we operate. We have a vision of becoming one of the largest Orangetheory franchisees in the system and are very much looking forward to this next chapter.”

Orangetheory utilizes technology and a science-backed combination of endurance, strength, and power to deliver superior fitness results. The Orangetheory brand has garnered attention for the strong sense of community generated within its member base – classes are group-based and incorporate real-time results displayed on large screens in the studio, allowing participants to set individual goals. The combination of exercise, personal success, and togetherness renders the Orangetheory workout a powerful tool which is effective for all fitness levels.

“After a multi-year outbound search in the health and wellness sector, we are very excited to partner with Empire. Orangetheory Fitness is designed to produce results for its members inside and out, giving people a healthier, happier and more vibrant life,” said Simon Bachleda, Co-Founder and Managing Partner at Revelstoke. Will Oliver, Vice President at Revelstoke, added, “We are long-term believers that health, wellness, and fitness in a community setting will become an integral, and increasing, part of people’s lives. We look forward to working with Adam to build and acquire studios and generate new loyal members who have been fundamental to Orangetheory’s significant growth.”

Winston & Strawn LLP acted as legal counsel to Revelstoke. Greenberg Traurig, LLP acted as legal counsel, and Piper Sandler & Co. acted as a financial advisor to Empire.

About Empire Portfolio Group Holdings

Empire Portfolio Group Holdings, founded in 2013 and headquartered in New York City, is a leading franchisee and area representative of Orangetheory Fitness. The Company operates 15 Orangetheory Fitness studios and 27 sub-franchised studios across New York, New Jersey, and Connecticut.

About Orangetheory

Orangetheory is a heart-rate based total-body group workout that combines science, coaching, and technology to produce maximum results from the inside out. Workouts are typically 1-hour long and are led by trained coaches, incorporating endurance, strength, and power to guide members through 5 different heart rate zones with the goal of burning more calories. The workout aims to increase excess post-exercise oxygen consumption (EPOC or the ‘Orange Effect’) whereby participants can continue to burn a higher rate of calories for 24 to 36 hours after their workout. There are currently over 1,400 fitness studios worldwide in the Orangetheory system.

About Revelstoke

Revelstoke is a private equity firm formed by experienced investors who focus on building industry-leading companies in the healthcare and related health and wellness sectors. Revelstoke partners with entrepreneurs and management teams to execute on a disciplined organic and acquisition growth strategy as it strives to build exceptional companies. Revelstoke is based in Denver, Colorado and has approximately $2.5 billion of assets under management. Since the Firm’s inception in 2013, Revelstoke has completed 86 acquisitions, which includes 20 platform companies and 66 add-on acquisitions.