CHANHASSEN, MN -- Last month, amid rumors that Snap Fitness was for sale, CEO and founder Peter Taunton said he had no desire to sell a majority share of the company. But Taunton did not rule out finding a minority partner. On June 3, the company announced a minority equity investment from Summit Partners. Terms of the transaction were not disclosed.
Summit Partners is a private equity and venture capital firm that has raised more than $11 billion since its inception in 1984.
“Our relationship with Summit Partners will allow us to fuel our international expansion operations, fortify our brand and lay the groundwork for long-term growth,” Taunton said in a statement. “This partnership will allow us to realize Snap Fitness’ true growth potential and stay true to our focus of providing our members a high-quality, high-value fitness experience, while finding ways to support the success of our franchisees. We look forward to working closely with Summit to leverage their expertise in helping rapidly growing companies.”
Sonya Brown, a Summit Partners principal, and Peter Rottier, a Summit Partners vice president, will join the Snap Fitness board of directors.
“Snap Fitness is led by a superior management team that understands the growing demand for a convenient and affordable health club experience,” Brown said in a company statement. “The company provides a platform, a brand, and a support infrastructure that enables franchisees to offer a product and service second to none in their market space. We believe Snap Fitness is poised for continued strong growth and are delighted to be working with Peter Taunton and his team.”
Among the products and services that Summit Partners has invested in are
3-Day Blinds, Belkin Corp. and Physicians Formula.
Taunton said last month that his company has about 700 clubs open and almost 1,500 clubs sold. Snap Fitness revenues are projected to be $30 million this year after the company generated $18 million last year and $5 million in 2006.
Snap Fitness, founded in 2003, has a 24-hour key-card club model and an average membership of $34.95 a month.