#USA #New York #Crunch Fitness #Leonard Green #TPG Growth

Crunch Holdings, LLC, widely recognized as a major player in the fitness sector, has taken a significant step forward by announcing its latest strategic investment from the well-respected private equity firm Leonard Green & Partners (LGP). This partnership not only marks a new chapter for Crunch Fitness but also positions the brand for accelerated growth and greater global reach. Founded in 1989 in the culturally rich area of Greenwich Village, Manhattan, Crunch has always been more than just a fitness center; it embodies a unique ethos of 'No Judgments,' which has resonated with a diverse and loyal membership base. Over the years, Crunch has undergone remarkable transformation, evolving from a single gym into a formidable name in the fitness industry, ranking #1 in its category for two consecutive years in the Entrepreneur Franchise 500®. Under the terms of this new agreement, LGP will acquire a majority stake in Crunch from TPG Growth, the growth equity arm of the global asset management firm TPG, as well as its minority shareholders. Jim Rowley, Crunch Fitness's CEO, expressed enthusiasm about this new partnership, citing LGP's impressive history of supporting consumer brands and its operational expertise as excellent complements to Crunch’s mission and values. The timing of this investment could not be better. Since TPG's initial investment back in 2019, Crunch Fitness has experienced breathtaking growth, adding more than 2.1 million new members and expanding its gym locations by over 275—an astonishing increase of 176%. Currently, the brand serves more than three million members across 500 gyms worldwide, boasting a strong footprint both domestically and internationally. These additions have propelled Crunch to the forefront of the fitness industry, demonstrating the increasing demand for its signature model of fun and inclusive fitness experiences. In light of the recent pandemic challenges, Rowley expressed deep gratitude to TPG for their critical support during these turbulent times. He highlighted how their partnership helped streamline the brand's expansion and navigate market fluctuations. Additionally, Rowley acknowledged the pivotal role of Crunch's franchisees and team members, whose unwavering commitment and entrepreneurial spirit have significantly contributed to the company's success. LGP’s Managing Partner, John Danhakl, praised Crunch’s unparalleled accomplishments over the past five years and expressed excitement about supporting the brand's continued growth trajectory. Danhakl noted that Crunch's robust business fundamentals and engaging member experiences make it an ideal candidate for LGP's portfolio. Partner at TPG, Jonathan Coslet, reaffirmed confidence in the Crunch team’s creativity and customer-centric culture, emphasizing their unique approach to fitness that continues to drive success. This investment is poised to further solidify Crunch's position in a competitive landscape as it seeks to innovate its offerings continually. New gym concepts like the recently unveiled Crunch 3.0 design exemplify the brand’s commitment to enhancing the member experience and continually adapting to market demands. Such initiatives underscore Crunch Fitness's dedication to making exercise accessible and enjoyable for individuals across various fitness levels. As the company strategizes for future expansions, the focus remains on cultivating a diverse fitness community that embraces everyone, allowing them to work out together in a supportive atmosphere. With its sights set firmly on the future, Crunch looks to expand its geographical horizon while staying true to its core values of fun and inclusivity in fitness. Prospective members can keep up with the brand's journey and find more information by visiting www.crunch.com. Leonard Green & Partners is no stranger to significant private equity investments. Founded in 1989 and based in Los Angeles, the firm manages over $70 billion in assets and has completed more than 150 investments across various sectors, making its insight and strategies valuable to the ongoing evolution of Crunch Fitness. In summary, this strategic investment signifies an exciting new chapter for Crunch Fitness as it seeks to expand its reach and influence in the fitness industry, driven by a strong leadership team dedicated to enhancing the member experience and a focus on maintaining an inclusive, enjoyable environment.