Gold's Gym International Inc. is being sold to TRT Holdings Inc., according to an announcement by Brockway Moran & Partners Inc., the Florida-based private equity firm that currently owns Gold’s. TRT Holdings is a privately owned, diversified holding company whose assets include the Omni Hotel chain. Details on the sale price were not being released by the company at this time, but Terrell Philen, CFO at TRT Holdings, said bidding for the company was competitive.
TRT Holdings was attracted to Gold’s Gym for several reasons.
“Being the owner of Omni, we are attuned to the value of a good brand name,” Philen said. “Gold’s had that. The ability to expand, grow the brand was attractive to us.” He said TRT Holdings is interested in companies with a strong brand, good management and a growth platform for capital.
Philen doesn’t expect management changes at Gold’s Gym International.
“The best way to characterize it is to stay the course,” Philen said. He did state that the company would look to open and acquire more corporate-owned facilities in the United States. Gold's Gym International expanded its corporate-owned gym footprint since Brockway Moran purchased it in 1999. The company currently owns 37 facilities and has about 513 franchised locations around the world with nearly 2.5 million members worldwide.
"Brockway Moran & Partners has been an outstanding partner over the past five years, and Gold's Gym has prospered under their ownership," Gene LaMott, president and CEO of Gold's Gym, said in a press release from Gold’s Gym. "We are excited to enter the next stage of our growth and believe TRT will be a valuable partner that will help further the Gold's Gym brand and our presence worldwide. With their support, we plan to continue the expansion of our franchise and corporate store operations both domestically and abroad. Additionally, we look forward to growing our product licensing division, which has been very successful to date."
The sale is expected to close in mid to late July. Gold’s Gym International will be hosting its annual international convention July 12-15 for franchisees from around the world, staffs from many of the corporate and franchised gyms, manufacturers and company management. Both Brockway Moran & Partners and TRT Holdings will be at the show.