Private equity firm Atlantic Street Capital, Stamford, Connecticut, announced this month it has made a "significant investment" in Planet Fit Indy 10 LLC, a fast-growing Planet Fitness franchise group based in Indianapolis. The company declined to offer the amount of the investment.
Atlantic Street Capital's leadership team will work alongside Planet Fit Indy CEO Mike Campagnolo to grow the franchisee's footprint in the Indianapolis area and beyond. Campagnolo will retain "a significant stake in the new company and lead the company's growth as CEO," according to a March 14 statement.
“The management team at Planet Fitness Corporate is truly remarkable in the ability to manage a brand and partner with its franchise base," said Andy Wilkins, Atlantic Street managing partner. "Combine that with a strong operator like Mike Campagnolo and the success speaks for itself. We look forward to being a strong financial partner to Mike and working tirelessly to be a top performer.”
Atlantic Street targets middle-market companies with $4 million to $12 million in EBITDA, the statement said. This is the firm’s first platform investment since it raised its Fund III with more than $210 million in capital commitments in 2016.
“Atlantic Street is the perfect partner for us as they share the same vision for our company,” Campagnolo said in the statement. “I was impressed by Atlantic Street’s successful multi-unit retail experience consolidating and scaling businesses within the Verizon and Jimmy John’s systems. Planet Fitness offers a compelling value proposition and its model is very attractive to members who want the benefits of a first-class gym but in a non-intimidating environment. I look forward to working with Atlantic Street to continue our steady growth beyond Indianapolis.”
Campagnolo has been CEO of Planet Fit Indy since the company was established in 2010. Previously, he was the owner and founder of Ultimate Health and Fitness.
Planet Fitness, Newington, New Hampshire, recently reported corporate fourth quarter revenue of $116.4 million and year-end revenue of $378.2 million, increases of 10 percent and 14 percent, respectively. The company also reported quarterly franchise segment revenue growth of 30.2 percent to $32.1 million.
Planet Fitness CEO Chris Rondeau has repeatedly said the company will continue to rely on the success of its existing franchisees, who currently open 90 percent of the brand’s new facilities.
Planet Fitness ranked seventh on Club Industry's Top 100 Health Clubs of 2016, with a 2015 reported revenue of $330.5 million.