A Pittsburgh-based private equity firm has purchased a substantial ownership stake in Mountainside Fitness Centers, Tempe, Arizona, that is intended to drive company growth in the coming years.
PNC Mezzanine Capital became Mountainside's first ownership partner when it completed a $15 million minority recapitalization of the company through a 25 percent preferred stock investment, PNC announced in a media release.
The partnership will help Mountainside expand its footprint through organic growth and strategic acquisitions while also reinvesting in its existing clubs, the release said.
“The management team at Mountainside Fitness is excited to again partner with PNC Mezzanine Capital," Mountainside CEO Tom Hatten said in the release. "They were a responsive, supportive and value-added investor for the company to help expedite our growth from 2014 to 2017, and we are confident they will again be a great partner for our company for years to come.”
Mountainside, which was founded in 1991, owns and operates 17 locations in Arizona.
“We are thrilled to have the unique opportunity to invest in Mountainside Fitness for a second time and to partner with Tom Hatten and the rest of the management team [to] lead the company into its next stage of growth," PNC partner Doug Brosius said in the release. "We believe our experience over the last decade investing and guiding companies in the fitness industry along with our partnership-oriented approach and additional capital will allow us to provide value-added support to Mountainside moving forward.”
Mountainside ranked No. 31 on Club Industry's Top 100 Health Clubs of 2019 list with $45 million in reported 2018 revenue. This marked a 10 percent increase from 2017.