Level 5 Capital Partners Acquires 112 Owned or Sub-Franchised Orangetheory Fitness Studios Across Michigan, Illinois, Utah and Missouri
Posted: December 10, 2021 in Chains
Orangetheory Fitness
ATLANTA, GA – Level 5 Capital Partners (“Level 5” or “L5”), a leading consumer private equity firm, announced that its franchisee platform, L5 Fitness, has acquired a collection of 112 owned and sub-franchised Orangetheory Fitness studios. The heart-rate based interval training fitness franchise, Orangetheory, offers science-backed, technology-tracked and coach-inspired workouts throughout its 1,300+ studios globally. This acquisition marks an expansion and strengthening of the L5 Fitness platform in Michigan, Illinois, Utah and Missouri.
Duane LeVine, a principal at Level 5 and L5 Fitness, expanded upon the reasons the consumer services-focused investment firm chose to increase its footprint.
“L5 Fitness is excited to announce the addition of three new markets to its core platform in Michigan, as well as the addition of Area Representative (AR) rights and owned studios across Utah, Missouri, and Illinois. We are impressed by the market dynamics and level of operational talent in place in these markets,” LeVine said. “L5’s core platform of Michigan was first acquired in 2019, with its prior AR owner, Scott Marcus, joining as CEO to run operations post-close. Scott and team will oversee the broader platform going forward.”
Each studio acquisition was strategic in nature. The Michigan, Illinois and Missouri acquisitions expand L5’s geographic footprint and create a contiguous territory, while the Utah acquisition allows L5 to enter a high-growth market. All four states offer attractive whitespace for organic growth.
In total, Level 5 has acquired and built 8 owned Orangetheory studios and 14 sub-franchised studios in Michigan; 11 owned studios and 50 sub-franchised locations in Illinois; 6 owned studios and 9 sub-franchised units in Utah and 5 owned studios and 9 sub-franchised studios in Missouri.
In response to the transaction, Level 5 Managing Partner, Chris Kenny, shared, “We continue to be pleased with our Orangetheory platform and look forward to expanding our system of studios throughout the Midwest and beyond. The Michigan, Illinois, Missouri and Utah studios have all built devoted member bases and serve as mainstays in their respective communities. We are eager to welcome them into the L5 Fitness family.”
Level 5 brings years of operational expertise to exceptional entrepreneurs like the franchisees of Orangetheory® studios. L5 seek opportunities where the team can drive rapid growth and scale in local services businesses, with a focus on health, wellness, and family markets.
Orangetheory® utilizes technology and a science-backed combination of endurance, strength and power to deliver superior fitness results. The Orangetheory® brand has garnered attention for the strong sense of community it generates within its member base. Classes are group-based and incorporate real-time results displayed on large screens in the studio, allowing participants to track progress on their goals in real time. The combination of exercise, technology and community renders the Orangetheory® workout a powerful tool, effective for all fitness levels.
