Planet Health will purchase its largest franchisee, Sunshine Health, in a $ 800 million deal that may strengthen the corporate’s presence within the Southeast.
The Hampton, NH-based firm introduced that the acquisition follows its sturdy progress in 2021, which noticed 1.7 million new prospects added for a complete of 15.2 million members.
Gyms have been initially laborious hit by the pandemic in 2020 when round 9,100 gyms – or 1 / 4 of the trade – have been completely closed. However many have additionally been in a position to swap to on-line programs and health lessons.
Final 12 months gyms started to get better, though it stays to be seen how the Omicron COVID-19 variant will have an effect on the height membership season originally of the 12 months, when folks make New Yr’s resolutions to shed kilos.
“There is a gigantic, long-term untapped alternative for our model to get folks off the sofa,” mentioned Chris Rondeau, CEO of Planet Health, in a press release . “
The health trade suffered a significant blow in the course of the top of the pandemic when it misplaced 9,100 places for good.Los Angeles Occasions through Getty Imag
Some gyms have been in a position to spin and supply lessons and lessons on-line.SOPA Photographs / LightRocket through Gett
Sunshine Health opened its first location in Altamonte Springs, Florida in 2003 and now has 114 places in Florida, Alabama, Georgia, South Carolina and North Carolina.
The acquisition will likely be funded with a mix of money and inventory and is predicted so as to add to Planet Health revenues, the corporate mentioned.
Planet Health will personal 10 % or 200 of its 2,254 shops throughout the corporate upon completion of the transaction.
Planet Health added 1.7 million new members in 2021.Toronto Star through Getty Photographs
Planet Health will personal 200 of its 2,254 places upon completion of the Sunshine Health deal.Toronto Star through Getty Photographs
Shane McGuiness, Co-Founder and CEO of Sunshine Health, who has owned and operated the Planet Health system for practically 20 years, will oversee the operations of the mixed company retailer portfolio.
San Francisco-based non-public fairness agency TSG Shopper Companions acquired a controlling stake in Sunshine Health in 2017 after beforehand supporting Planet Health. The corporate left Planet Health in 2015 when it grew to become a public firm, however will change into a shareholder once more with the acquisition of Sunshine Health, the businesses mentioned.
Planet Health shares rose practically 2 % to $ 91 on Tuesday.