CHICAGO – An industry veteran and private equity firm have agreed to buy Crunch, a high-end club division of Bally Total Fitness, for $45 million in cash. Marc Tascher and Angelo, Gordon & Co. will buy all 21 Crunch clubs in major cities including New York, Chicago and Los Angeles as well as its Gorilla Sports clubs and two Pinnacle Fitness clubs in San Francisco.
Bally plans to use the funds to pay down a $175 million loan and close the deal in the fourth quarter. The gym operator views the anticipated sale of Crunch as a way to turn around its business by reducing debt and refocus on core, middle-market customers.