112 Orangetheory Fitness Studios Purchased by Level 5 Capital Partners

L5 Fitness has acquired 112 owned and sub-franchised Orangetheory Fitness studios, according to an announcement from Level 5 Capital Partners, an Atlanta-based private equity firm for which L5 Fitness is its franchisee platform.

Prior to the purchase, Level 5 had 22 Orangetheory franchises and sub-franchises in Michigan. It also operates CorePower Yoga locations in six states as well Restore Hyper Wellness + Cryotherapy locations. The company declined to disclose how many CorePower Yoga and Restore locations it owns.  

With the purchase, Level 5 acquired and built eight owned Orangetheory studios and 14 sub-franchised studios in Michigan; 11 owned studios and 50 sub-franchised locations in Illinois; six owned studios and nine sub-franchised units in Utah and five owned studios and nine sub-franchised studios in Missouri. 

Each studio acquisition was strategic in nature, according to the announcement. The Michigan, Illinois and Missouri acquisitions expand L5's geographic footprint and create a contiguous territory, while the Utah acquisition allows L5 to enter a high-growth market. All four states offer attractive whitespace for organic growth, the company said. 

Level 5 Capital Partners was founded in 2009 by Fortune 1000 technology executives to invest in consumer services businesses with a focus on wellness and lifestyle offerings. The Level 5 team expanded its original investment in one Core Power Yoga studio into the third largest national yoga studio operator in less than a decade.

L5 has partnerships with Orangetheory Fitness, Heyday, Big Blue Swim School, Restore and Corepower Yoga to open hundreds of locations over the next few years.