US Fitness Holdings LLC, McLean, Virginia, which owns Sport & Health, Onelife Fitness and some Crunch Fitness locations, announced on May 29 it received a majority investment from New York City-based investing firms Delo Capital and HRS Management of an undisclosed amount.
As part of the transaction, New Evolution Ventures (NeV), Lafayette, California, has sold its interest in US Fitness, a media release said. NeV Chairman Mark Mastrov, who founded 24 Hour Fitness, originally struck a partnership with US Fitness, which is led by brothers Kirk and John Galiani, in February 2012.
The Galiani brothers, who are co-chairmen of US Fitness, and President John Cristiano will continue to own significant interest in the company while overseeing strategic direction and day-to-day operations, the release said.
"We are very proud of the business we have built at US Fitness, and we could not be more excited about our future with Delos and HRS as we accelerate our growth," Kirk Galiani said in the release.
As part of the new partnership, US Fitness plans to create 2,500 jobs and invest $50 million in club improvements by 2023. The company is on track to open six new clubs in Maryland, Virginia and Georgia in 2018, with plans to open an additional five to six clubs each year for the next five years.
"The success of US Fitness is driven by many passionate people dedicated to inspiring members and delivering the ultimate fitness experience,” John Galiani said in the release. “We are thrilled to work with our new partners to bring our industry-leading clubs to more communities around the country.”
Prior to founding US Fitness, Kirk Galiani and John Galiani were CEO and COO, respectively, of Gold’s Gym International. The brothers were also part owners and franchisees of Gold’s Gym before leaving the brand in 2009.
"Delos could not be more pleased to partner with US Fitness and HRS in this investment," Delos Capital founder Matthew Constantino said in the release. "By all metrics, US Fitness represents a best-in-class company and management team, and together we have identified a host of exciting opportunities to drive further value."
Delos Capital was founded in 2013 by Constantino and specializes in management buyouts, recapitalizations, and growth investments.
HRS Management is a family office founded by Joshua Harris, co-founder of Apollo Global Management and a principal owner of the Philadelphia 76ers, the New Jersey Devils and the Crystal Palace Football Club of the British Premier League.
Law firm Cole Schotz P.C. represented Delos Capital in the deal, led by members James Stefanick and James Kim and associates Samantha Epstein and Rimma Tsvasman.