• Loading stock data...
Tuesday, November 12, 2024
DEADLINE EXTENDED: The Best Employers in Sports survey is now open through Nov. 13 Learn More

Planet Fitness to Buy 114 Locations for $800M

  • Planet Fitness is buying 114 locations from its first franchisee.
  • The deal is for $800 million in cash and stock.
Planet-Fitness-Sunshine-Fitness
JOHN HEIDER-Imagn/Design: Alex Brooks

Amid uncertainty for the gym industry, Planet Fitness is doubling down.

The affordable gym chain is acquiring 114 locations from Sunshine Fitness, its first franchisee, for $800 million in cash and stock. Sunshine Fitness operates in the Southeastern U.S.

Planet Fitness will use a mix of cash on hand and new securitized notes issued from an existing financing facility to pay $425 million of the total bill.

  • Planet Fitness said it ended 2021 with 15.2 million members, marking a 12-month increase of 1.7 million people. It had 2,254 gyms in its system.
  • Despite this hefty transaction, Planet Fitness said it was “retaining its asset-light business model,” and will own around 10% of its system-wide store base once the deal closes.

State of the Gym

The gym industry has faced the twin challenges of the global pandemic and the rise of at-home fitness, but recent data suggests a recovery.

ClassPass showed a 329% increase in in-person fitness reservations from January to November 2021. Live-stream workouts had a corresponding fall of 58% over the same period, bottoming out at just 2% of ClassPass reservations, compared to 89% in April 2020.

Hybrid work models may be benefiting the gym industry: 70% of respondents in a ClassPass survey said they have gone to a gym or fitness studio on days they’re working from home. 

Placer.ai found that weekly gym visits recovered to 2019 levels by the end of 2021, despite being around 30% below the 2019 benchmark in February 2021.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Former President Donald Trump waves to the crowd as he exits the putting green with his aide Walt Nauta, left, during the final round of the LIV Golf Bedminster golf tournament at Trump National Bedminster on Sunday, Aug. 13, 2023.
opinion

Trump Win Puts Sports Back in the White House

With Trump back in the White House, sports get more political again.
Members of the NY Giants run onto the field to start the game between the New York Giants and the Washington Commanders at MetLife Stadium in East Rutherford on Sunday, Nov. 3, 2024.

The NFL Is Becoming the League With No Borders

Where will the NFL go next? International expansion will only get bigger.

NFL Center Connor McGovern Is the Heir to a Potato Empire

The NFL vet’s family provides potatoes for McDonald’s, Wendy’s, and others.
Vanderbilt Commodores fans head to the south end zone as the goal post is taken down by exuberant fans after beating No. 1 Alabama 40-35 at Vanderbilt Stadium in Nashville, Tenn., Saturday, Oct. 5, 2024.
opinion

Something New in College Football This Year: Parity

Upsets, surprises. CFB is more fun on the field than the NFL.
podcast thumbnail mobile
Front Office Sports Today

Can the NBA Cup Help Revive Lagging Viewership?

0:00

Featured Today

Sep 28, 2024; Tuscaloosa, Alabama, USA; GOP Presidential candidate Donald Trump waves flanked by former Georgia Bulldogs player Herschel Walker, recording art Kid Rock, professional golfer John Daily, Alabama senators Tommy Tuberville (R) and Katie Britt (R) during the second half of the game between the Alabama Crimson Tide and the Georgia Bulldogs at Bryant-Denny Stadium.

Mission Swing State: College Football’s Political Advertising Battle

Trump, Harris, and the PACs that support them are utilizing the sport.
October 31, 2024

The Untapped Revenue ‘Powder Keg’ of Women’s NFL Fandom

There’s a “boatload” of money at stake for brands and the league.
Donald Trump holding a basketball in the White House
October 30, 2024

Mavericks Owner’s $100 Million Trump Donation Dwarfs All Other Sports Owner Political Giving

Dr. Miriam Adelson is one of the most powerful donors in U.S. politics.
Oct 19, 2024; Gainesville, Florida, USA; Florida Gators quarterback DJ Lagway (2) shakes hands while entering the locker room after a game against the Kentucky Wildcats at Ben Hill Griffin Stadium.
October 28, 2024

NIL Director Is the Trendy New Job in College Sports. But the Role Is Chaos

Athletic departments nationwide are hiring for what’s become their most important position.
Peloton Bike

Peloton Earnings Beat Expectations As It Still Loses Subscribers

Peloton tapped Peter Stern, former Ford executive and cofounder of Apple Fitness+, to be its new CEO.
A view of a Nike retail store in New York City.
August 15, 2024

Nike Shares Surge As Bill Ackman Invests, Igniting Turnaround Hopes

The billionaire hedge-fund executive holds significant influence in the market.
September 4, 2024

Under Armour Sells MapMyFitness Back to Founders 11 Years Later

The founders sold the tracking app to the apparel giant in 2013.
Sponsored

How UBS Crafts Impactful Partnerships Across Sports, Arts, and Culture

As UBS continues to expand its impressive array of sports and entertainment partnerships, the company solidifies its position as a leader in wealth management.
August 13, 2024

Federer’s On Brand Continues Surge, Challenging Sportswear Giants

Earnings weren’t all positive for On, causing a dip in its premarket stock price.
Peloton
May 2, 2024

Peloton Timeline: CEO Changes, Layoffs, Recalls, and Falling Stocks

The company has fallen from grace after roaring success in 2020.
October 18, 2023

Peloton To Bring Live Sports To Its Fitness Devices

NBA League Pass will be available to watch on Peloton devices.
August 10, 2023

Alternative Golf Venues Thriving ‘Off-Course’ By Attracting Younger Players

In 2022, 15.5 million people participated in off-course golf activities.