California Family Fitness, Orangevale, California, has been sold by its owners, Bunker Hill Capital, to private investment firm Perpetual Capital Partners for an undisclosed amount, Bunker Hill Capital announced on Wednesday.
Larry Gury and Russ Kuhn, who co-founded California Family Fitness (CFF) in 1994, are retiring from fitness business operation, according to a post by Gury on his LinkedIn page. Gury noted that the two will continue to identify and build new cites for CFF under their other business, Fit Development Co. Randy Karr will remain with CFF as president.
Gury and Kuhn had remained active in the company even after Bunker Hill Capital purchased California Family Fitness in 2006. In September 2013, Gury and Kuhn sold $100 million worth of their real estate portfolio to finance the addition of clubs to the 17 clubs that the brand had then in the Sacramento area. In 2014, the company acquired two clubs from Wenmat Fitness, Sacramento, California, for an undisclosed amount.
Gury said that he has "pride that the leadership team and brand we built for so many years will carry on and the company will continue to grow for generations to come. This new partnership is a reflection of CFF’s success as an organization, as well as its potential for the future."
Today, CFF's 19 mid- to large-format clubs offer members cardio and weight machines, swimming pools and basketball/racquetball courts, group fitness, child care, tanning, sauna and steam rooms, and organized sports leagues.
"We are very appreciative of Bunker Hill Capital’s efforts to help us grow from an entrepreneurially run company to a more developed, professionally run organization," Karr said in the release. The team from Bunker Hill helped us think more strategically about our business and helped put in place the necessary tools and controls to execute our strategy. We look forward to continuing to grow the business with our new partner, Perpetual Capital, and we welcome them to the CFF family."