Private equity firm L Catterton has entered into a definitive agreement to sell CorePower Yoga, Denver, to San Francisco-based TSG Consumer Partners, the parties announced March 12. The terms of the sale were not publicly disclosed.
Connecticut-based L Catterton first invested in CorePower in 2013, and the yoga brand has since expanded from 80 locations in 12 states to 200-plus locations in 23 states. In recent years, L Catterton has also invested in other fitness brands such as Equinox, Peloton, and Pure Barre.
"We are proud of the success and growth that CorePower Yoga has achieved over the past five years," Marc Magliacano, managing partner of L Catterton's Flagship Buyout Fund, said in a media release. "[CorePower has] introduced new, innovative classes and improved its member retention through consistent superior quality and a unique consumer experience rooted in community. ... We are pleased to have partnered successfully with [CEO] Eric Kufel for the second time in growing an outstanding consumer brand and to have produced a positive investment outcome for [CorePower] stakeholders. [CorePower's] tremendous advancements are a testament to Eric's strong leadership and outstanding team, and we are grateful to the entire [CorePower] community and team for their devoted partnership and for making this a successful investment."
In the same release, Kufel said that L Catterton's experience with fitness-related investments made them an ideal partner.
"We look forward to the future as we strive to share the benefits of yoga with even more people, continue on our strong growth trajectory and enter this new chapter," Kufel said. "With our superior yoga experience, rapidly expanding studio base, transformational trainings, new offerings, and, most importantly, the thousands of teachers who help us live our mission everyday through their collective gratitude, passion and teamwork, CorePower Yoga is well positioned to continue to deliver on our important mission. We thank L Catterton for their support and many contributions to get us here."
CorePower was founded in 2002 by Trevor Tice, who remained involved with the company until 2014. Tice died in December 2016.
For the transaction, CorePower sought financial counsel from BofA Merrill Lynch and legal counsel from Kirkland & Ellis.
TSG Consumer Partners, founded in 1987, currently claims $9 billion in managed assets. The firm partnered with Planet Fitness in November 2012, prior to the health club company's stock market launch.