Crunch Fitness, New York, has new ownership after management of the company partnered with TPG Growth to acquire it from Angelo, Gordon & Co. LP, according to an announcement on July 1 from Crunch and TPG Growth.
Financial terms of the transaction were not disclosed, but Jim Rowley, CEO of Crunch, told Club Industry that it was “significant and we are very pleased with the outcome.”
The transaction includes Crunch’s global franchising business as well as all Crunch locations, including its company-owned Signature facilities.
TPG Growth is the middle market and growth equity platform of alternative asset firm TPG, which owns Life Time, Chanhassen, Minnesota. Jonathan Coslet, the chief investment officer of TPG, was personally involved in the deal along with Chris Kelly, who helps lead investments for TPG Growth in the consumer, retail and education industries.
“The big thing is that Angelo, Gordon’s private equity arm was relatively small, and now we will be owned by one of the giants in the business,” Rowley said in a phone interview on July 1. “It would stand to reason that it will bring a lot of opportunities.”
The team plans to double the size of Crunch in the next three to five years, he said, with a focus on franchised growth both domestically and internationally as well as continuing to grow the company’s Signature properties, which are its premier clubs that offer members expanded facilities, upgraded amenities, dedicated RIDE and yoga studios, full-service locker rooms and more.
In 2009, Rowley and Mark Mastrov acquired Crunch with the private equity arm of Angelo, Gordon and began franchising the brand in 2010. Mastrov, who is chairman of Crunch, and Rowley had owned Crunch as individuals through a company they formed called NEFC Crunch, Rowley said. Previously, the two had built and run 24 Hour Fitness, San Ramon, California. The two also own New Evolution Ventures.
After the deal with TPG Growth, the principal owners of Crunch are TPG Growth, Mastrov and Rowley, Rowley said, but these other members of Crunch management are individual investors: Mike Feeney, executive vice president at New Evolution Ventures; Keith Worts, CEO of Crunch Signature; Ben Midgley, CEO of Crunch Franchise and Craig Pepin-Donat, executive vice president, partner of Crunch Franchise.
“With TPG, we’ve found a partner who understands our vision and industry,” Mastrov said in the announcement. “They have a long history of working with companies to build authentic brands, and we’re excited to welcome them to the Crunch team.”
Founded in 1989 in New York City, Crunch owns, operates and franchises more than 300 fitness centers serving more than 1.3 million members across the United States, Australia, Canada and Spain.
TPG previously owned Xponential Fitness until it sold it in 2018 to Anthony Geisler and Snapdragon Capital, which was created by former TPG partner Mark Grabowski.