Private equity firm TPG Growth will acquire Crunch Fitness through its growth-equity unit. The sale includes the company-owned “Signature” facilities and its global franchising business.
The financial terms of the transaction were not disclosed.
Crunch is managed by Mark Mastrov and Jim Rowley, the founders of 24 Hour Fitness. Mastrov and Rowley bought Crunch with the private equity arm of Angelo Gordon in 2009. They began franchising the brand in 2010.
The company has more than 300 fitness centers and over 1.3 million members in the United States, Australia, Canada, and Spain.
Angelo Gordon said the sale was completed by private equity funds managed by the firm.
“With the support of our new partners at TPG, we’re well positioned to accelerate this offering. We look forward to working together to enhance our capabilities and expand Crunch’s footprint across the globe,” Rowley, the chief executive officer of Crunch, said in a statement.
TPG said its consumer team has been pursuing a strategy of investing in companies that create “elevated experiences” that cater to consumer interests. In 2015, TPG announced it was acquiring Life Time Fitness, an athletic lifestyle resorts chain, with Leonard Green & Partners in a deal valued at more than $4 billion. Life Time was a public company that was considering converting into a real estate investment trust.
TPG also cited its investments in Beautycounter, a Santa Monica-based personal care and skin-care company; Mendocino Farms, a restaurant chain; and Philz Coffee, a slow serve pour-over coffee company based in San Francisco.
TPG bought a minority stake in Beautycounter and led a $45 million financing round for Philz Coffee.
Citigroup Global Markets acted as exclusive financial adviser to Crunch. Piper Jaffray & Co. acted as financial adviser to TPG Growth.