Planet Fitness Holdings LLC, Newington, NH, is planning to go public soon, according to a report by Reuters that cites unnamed sources.
One source told Reuters that the company could be valued at more than $2 billion, which includes debt.
Planet Fitness ranked No. 7 on Club Industry's Top 100 Clubs list in 2014 with a reported $211 million in 2013 revenue, a 32 percent increase from 2012. That revenue included company-owned stores and franchisee fees, but not franchisee revenue.
When contacted by Club Industry about the report, a spokesperson for Planet Fitness responded that the company had "no comment at this time."
Planet Fitness owners Mike Grondahl, his brother Marc Grondahl and Chris Rondeau had discussed going public at least once before, in 2011.
At that time, Rick Caro, president of Management Vision, New York, told Club Industry that it would be difficult for a public franchise company to show quarterly improvement.
“That probably would be dependent on selling more franchises every quarter, and that’s an unpredictable business,” Caro said at that time.
The company put plans for an IPO on hold at that time while it dealt with a lawsuit involving a franchisee group. The two groups settled in August 2012.
Then, in late 2012, TSG Consumer Partners, which has offices in San Francisco and New York, invested an undisclosed sum into Planet Fitness, taking part ownership of the company. The Grondahls and Rondeau retained 25 percent ownership of the company at that time. In January 2013, Mike Grondahl stepped down as CEO, remaining on the board. Rondeau became CEO. Marc Grondahl served as CFO until July 2013 when Dorvin Lively, former CFO for RadioShack, became CFO of Planet Fitness.
According to TSG Consumer Partners' website, the company invests in "branded consumer products and consumer services companies which compete in markets that are well-established and not typically subject to the risks associated with economic cycles and technological obsolescence."
Planet Fitness reached 5 million members in May 2014, according to its website, which also states that the company has 800 locations.