HGGC Completes Majority Investment in Planet Fitness Franchise Group PF Atlantic Holdings
Posted: November 18, 2021 in Chains
PALO ALTO, CA – HGGC, a leading middle market private equity firm, announced it has completed a majority investment in PF Atlantic Holdings, a top-15 franchisee within the Planet Fitness health club system. In conjunction with the investment, PF Atlantic Holdings is rebranding as Grand Fitness Partners. Co-founders CEO, David Bidwell, and COO, Scott Linsky, will continue to lead the business and retain a significant minority stake in the business alongside current investor Monogram Capital. Details of the private transaction were not disclosed.
Grand Fitness Partners, headquartered in Toms River, New Jersey, and founded in 2010, is one of the fastest growing franchisees in the Planet Fitness system. Today, the Company owns and operates 42 Planet Fitness health clubs in Florida, California, New Jersey, and Pennsylvania.
“We’re very excited to partner with David and Scott, two tremendous operators, and with Monogram Capital to help accelerate the impressive growth they have achieved at Grand Fitness Partners over the past decade,” said Steven Leistner, a Partner at HGGC. “Grand Fitness Partners has already exceeded pre-Covid membership and revenue figures, representing the team’s strong leadership and resilience through a trying period in the fitness space. We believe in Planet Fitness as a long-term secular health and wellness winner and have great confidence in Dave and Scott’s continued success building a leading platform in the Planet Fitness system.”
Leistner, HGGC Principal Phil Sampognaro, and HGGC President and Co-Founder Steve Young will all join the Board of Directors of Grand Fitness Partners.
“Scott and I are thrilled to welcome HGGC as our new financial partner, as we continue to execute our successful strategy,” said Bidwell. “Our ambitions are high and HGGC’s resources, network, and expertise will ensure that we can capitalize on market tailwinds and seize the substantial opportunity to drive organic growth and expand our footprint.”
Jared Stein, co-founder and partner at Monogram Capital Partners, led the investment for Monogram and will remain on the Board. Stein added, “This partnership is an ideal opportunity to continue the tremendous growth we’ve driven over the past four years with the Grand Fitness team and pull in HGGC, an optimal partner to help further catalyze our expansion in the next chapter ahead. Given our close long-standing relationship with HGGC, we felt they were uniquely capable of bringing additional capital into the business to amplify our new unit growth and serve more members, helping to jointly realize our mission of bringing affordable, non-intimidating fitness to even more people.”
Carlyle’s Global Credit segment and the Private Credit business within Goldman Sachs Asset Management provided financing for the transaction.