Private equity firm LNK Partners, White Plains, New York, has sold Houston-based Fitness Connection and parent company Titan Fitness Holdings to affiliates of private equity firm Roark Capital Group, Atlanta, the companies announced Feb. 4. The terms of the deal were not publicly disclosed.
Fitness Connection first teamed with LNK in September 2013. The partnership helped Fitness Connection expand from 28 health club locations to 41. Its primary markets are in North Carolina, Texas and Nevada.
"The LNK team has been an extraordinary, value-added partner in building the Fitness Connection business, supporting the investments we have made in our unit expansion as well as the people and infrastructure required for continued growth," Fitness Connection CEO Phil Howard said in a media release. "We could not have asked for a better partner for this stage of our journey as a company and management team, and their guidance has been invaluable in helping to position Fitness Connection for future success."
LNK specializes in buyouts, growth capital and recapitalizations and typically invests between $50 million to 200 million per transaction. Its previous partners include Calvin Klein, Life Time, Pepsi and Quaker Oats, among others.
"It has been a privilege for LNK to partner with the Fitness Connection team in building the company into one of the leading concepts in the HVLP segment of the fitness market," LNK partner David Landau said in the release. "This sale represents an excellent result for LNK's investors, as well as a terrific outcome for the Fitness Connection team, and we are confident they will continue to be successful going forward."
Roark Capital Group currently claims over $12 billion in equity capital raised since its founding in 2001. The firm specializes in investments in education, food and restaurants and health and wellness.
Fitness Connection was advised by Jefferies LLC (lead financial advisor), Piper Jaffray & Co. (co-financial advisor), Kirkland & Ellis LLP (legal counsel) and RSM US LLP (accounting advisory services).
Roark Capital was advised by Paul, Weiss, Rifkind, Wharton & Garrison LLP.