Barry's Bootcamp, Los Angeles, received a strategic investment from North Castle Partners, Greenwich, Connecticut, on Tuesday.
The investment will fuel growth and expansion of the Barry's Bootcamp brand in new markets and develop additional locations in existing markets, according to a joint media release. Terms of the investment were not disclosed.
North Castle was said to value Barry's Bootcamp at about $100 million, according to a Wall Street Journal report in June that cited unnamed sources familiar with the talks.
Joey Gonzalez will become the CEO of Barry's Bootcamp in a move outgoing CEO John Mumford called a "perfect choice." Mumford, who co-founded Barry's Bootcamp in 1998 with Rachel Mumford and Barry Stitch, will serve on the new company board and will be the managing director of international strategy.
"After 17 years as CEO, I am grateful that I played a small role in improving thousands of lives," Mumford said in a statement. "NCP's expertise in service intensive, healthy lifestyle businesses makes it a great partner to help grow the Barry's brand."
Gonzalez started at Barry's Bootcamp as a group fitness instructor in 2004 after graduation at the University of Southern California. He eventually became a manager and most recently served as chief operating officer and partner.
"I've dedicated much of my professional career to growing Barry's Bootcamp and am honored to step into the role of CEO. It's a dream come true to see this vision to fruition and expand the business while maintaining the ethos that makes it special to consumers," Gonzalez said in a statement. "The collaboration with North Castle Partners is a natural fit due to their extensive experience with fitness club operators. It is apparent to us that North Castle possesses a true understanding of the DNA of Barry's Bootcamp, and we're confident they will support our corporate team to help expand and strengthen the business."
North Castle Partners' past and current portfolio includes Equinox Fitness, International Fitness Holdings (World Health and Spa Lady), Curves International, Jenny Craig, Naked Juice and Octane Fitness.
North Castle Partners sold Equinox Holdings for $505 million to Related Companies in 2006.
"At the foundation of the North Castle approach is to partner with exceptional management teams and industry professionals to unlock the full potential performance of companies in the healthy, active and sustainable living sector," North Castle Managing Partner Chip Baird said in a statement.
North Castle Managing Director Jon Canarick said NCP plans to leverage its established industry network and knowledge to build Barry's Bootcamp into "one of the premier boutique fitness studio operators and brands in the world."
Moelis & Company acted as exclusive financial advisor to Barry's Bootcamp along with Buchalter Nemer as legal advisor. North Castle Partners was represented by Morrison Cohen LLP.
Barry's Bootcamp operates in 17 locations with studios in California (five), New York (five), Florida (one), Massachusetts (one), Tennessee (one), Norway (two) and England (two). The company plans to open a 4,500-square-foot studio in Hollywood and its fourth studio in Manhattan on the Upper East Side later this year.
Barry's Bootcamp offers hour-long bootcamps combining strength and cardio workouts accompanied by music. The company says that participants can burn 1,000 calories during the workouts.