TSG Consumer Partners has acquired a majority stake in Sunshine Fitness, a franchisee of Planet Fitness clubs. No financial terms were disclosed. Piper Jaffray & Co served as financial adviser to TSG on the transaction while Fidus Partners LLC advised Sunshine Fitness. And, Ropes & Gray LLP provided legal counsel to TSG and Akerman LLP did likewise for Sunshine Fitness.
SAN FRANCISCO & ORLANDO, Fla.–(BUSINESS WIRE)–TSG Consumer Partners (“TSG”), a leading private equity firm focused exclusively on the branded consumer sector and prior majority owner of Planet Fitness, and Sunshine Fitness Management LLC (“Sunshine Fitness”), the first franchisee of Planet Fitness clubs, today announced that TSG has acquired a majority stake in Sunshine Fitness. Terms of the transaction were not disclosed.
Founded by Co-CEOs Eric Dore and Shane McGuiness in Orlando, Florida, Sunshine Fitness is one of the largest franchisees of Planet Fitness clubs. Since opening the first franchised Planet Fitness location in 2003, Sunshine Fitness has grown rapidly and currently operates 31 locations across Florida, Georgia and Alabama. Planet Fitness, one of the fastest-growing health club franchises in the United States, provides a high-quality fitness experience in a welcoming, non-intimidating environment.
McGuiness said, “We’re excited to be partnering with a top tier consumer expert like TSG, who has an extensive track record in supporting and building world class brands, as well as an intimate knowledge of Planet Fitness. With TSG’s support, we look forward to accelerating growth of the Sunshine Fitness platform through new store growth and acquisitions, while enhancing the unique, welcoming environment that we provide to our members in the region.”
Michael Layman, Managing Director at TSG, added, “Our prior investment in Planet Fitness gave us a deep appreciation of the strength of that brand, as well as the unique value proposition offered to consumers by the company’s franchisees, and Sunshine Fitness in particular.”
Pierre LeComte, Managing Director at TSG, added, “We are thrilled to leverage our experience with the brand and partner with Sunshine Fitness — the pioneer of the Planet Fitness franchisee model and a very successful franchisee. We are eager to bring our knowledge and experience to catalyze Sunshine Fitness’s growth, both through new clubs and as a platform for acquisitions of other Planet Fitness franchisees.”
Chris Rondeau, CEO of Planet Fitness, said, “We’re pleased to see two of our long-time partners, Sunshine Fitness and TSG, come together. The decision by TSG to invest in Sunshine Fitness is a clear testament to the power of the franchisee model and the Planet Fitness brand. With the Planet Fitness community recently surpassing 10 million members, we are thrilled to see our franchisees continue to drive growth, as we all strive to bring comfortable, low-cost fitness experiences to as many communities as possible.”
TSG’s involvement with the Planet Fitness brand dates back to November of 2012 when TSG acquired a majority stake in Planet Fitness. For nearly five years, TSG and Planet Fitness worked together to develop the Planet Fitness Brand and improve the support and value proposition for both members and franchisees. In August of 2015, Planet Fitness began trading publicly on the New York Stock Exchange.
After a successful partnership, TSG exited its investment in May of 2017.
Piper Jaffray & Co. served as financial advisor to TSG and Fidus Partners, LLC advised Sunshine Fitness. Ropes & Gray, LLP served as legal counsel to TSG and Akerman LLP served as legal counsel to Sunshine Fitness.
About TSG Consumer Partners
TSG Consumer Partners, LLC is a leading investment firm with approximately $5 billion of assets under management, focused exclusively on the branded consumer sector. Since its founding in 1987, TSG has been an active investor in the food, beverage, restaurant, franchise, beauty, personal care, household, apparel & accessories, and e-commerce sectors. Representative past and present partner companies include Duckhorn Wine Company, vitaminwater, thinkThin, popchips, Muscle Milk, Yard House, Stumptown, Pabst, Planet Fitness, REVOLVE, Backcountry, Smashbox Cosmetics, Pureology, Sexy Hair, e.l.f. Cosmetics and IT Cosmetics. For more information, please visit www.tsgconsumer.com.
About Sunshine Fitness
Sunshine Fitness Growth Holdings, LLC, is a leading owner and operator of Planet Fitness gyms, the fastest-growing health club franchise in the United States. Led by Co-CEOs Eric Dore & Shane McGuiness, Sunshine Fitness recognized the differentiated value offered by Planet Fitness and opened the first franchised Planet Fitness location in Altamonte Springs, Florida in 2003. Since then, the group has grown to more than 30 clubs across Florida, Georgia, and Alabama, and is one of the largest franchise groups in the Planet Fitness network. The Company is dedicated to the Planet Fitness mission of providing a comfortable workout environment that enables anyone to pursue a healthy, happy lifestyle.