After closing, the new company will leverage resources and scale to position a combined portfolio of world-class brands – including Anytime Fitness and Orangetheory Fitness – for growth in the $5.6 trillion global wellness economy
BOCA RATON, Fla. and WOODBURY, Minn., Feb. 29, 2024 /PRNewswire/ — Orangetheory Fitness, the leader in heart rate-based interval training, and Self Esteem Brands, the leading portfolio of purpose-driven health and personal care franchise brands, have announced an intent to merge as equals in an all-stock transaction, forming a new company with one of the largest footprints of fitness, health and wellness services in the world. Through a combined portfolio of world-class brands: Orangetheory Fitness, Anytime Fitness, Waxing the City, Basecamp Fitness/SUMHIIT Fitness, The Bar Method and Stronger U Nutrition, the new company will represent $3.5 billion in systemwide sales and approximately 7,000 franchise locations across 50 countries and territories on all seven continents.
“From our simple beginnings in 2002 with the first Anytime Fitness club, we’ve enjoyed rapid growth worldwide thanks to both the power of small-business franchising and our mix of brands that meet ever-increasing demand for more holistic and personalized health and wellness services,” said Chuck Runyon, co-founder, Anytime Fitness and CEO, Self Esteem Brands. “With this merger, we will enrich even more people around the world through franchising, community and the services they need – now and in the future – on their personal health and wellness journeys.”
The merger will result in significant international scale for the new company, with continued investments in leading-edge data and analytics, technology, products and services that help franchisees across its brands outpace growing consumer demands for holistic health and wellness services.
“As we start a new chapter, Orangetheory will continue to build on our legacy of innovation and transformation,” said Dave Long, co-founder and CEO of Orangetheory Fitness. “Today, with this groundbreaking agreement, we are one step closer to setting a new benchmark for what it means to be a global leader in fitness, health and wellness. We are excited about what our combined companies will be able to accomplish together to capture an increasing market share, unlock future growth and pioneer a healthier tomorrow for consumers around the world.”
Roark Capital, a private equity firm that focuses on investing in franchise and multi-unit businesses has been invested in Self Esteem Brands and Orangetheory Fitness since 2014 and 2016, respectively. “The founders and leadership teams at both Self Esteem Brands and Orangetheory have built terrific brands, and each have a long history of remarkable growth. We’re excited to continue to partner with the teams to create a leading global franchise platform in the health and wellness sector,” said Erik Morris, chief investment officer of Roark Capital.
Timing of the merger is subject to regulatory approvals and customary closing conditions.
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About Orangetheory
Orangetheory® Fitness (orangetheory.com) is a heart rate-based group workout that combines science, technology and expert coaching to help members live a longer, more vibrant life. Orangetheory workouts are backed by science and designed to supercharge your metabolism and cardiorespiratory health for more results. The workouts utilize connected technology to track performance, so members can view their detailed results in real-time, and monitor progress over time. Every Orangetheory workout is led by a certified coach to ensure members of all fitness and ability levels can be successful and continually challenge themselves. One of the world’s fastest-growing franchise companies, Orangetheory franchisees have opened more than 1,500 studios in all 50 U.S. states and 24 countries. For more information on Orangetheory Fitness, including global franchise opportunities, please visit https://www.orangetheory.com.
About Self Esteem Brands
Headquartered in Woodbury, Minnesota, USA, Self Esteem Brands brings together the largest health and wellness franchise brands, Anytime Fitness®, Basecamp® Fitness, SUMHIIT Fitness, The Bar Method®, and Waxing the City®. With the mission to improve self-esteem of the world, the suite of brands that makes up the Self Esteem Brands family has nearly 5,500 operating locations across all seven continents. Additionally, Self Esteem Brands affiliates Stronger U Nutrition, Healthy Contributions, and Provision Security provide a host of direct to consumer and franchisee support services. For more information on Self Esteem Brands please visit https://sebrands.com/.
About Roark
Roark is an Atlanta-based private equity firm with $37 billion in assets under management. Roark specializes in franchise and franchise-like business models in the health, wellness and fitness, restaurant, education and youth activities, and consumer and business services sectors. For more information, please visit www.roarkcapital.com.
SOURCE Orangetheory Fitness and Self Esteem Brands
