Two former Power Plate International CEOs appear to be competing to acquire the Irvine, CA-based company.
Gregg Hammann recently resigned as CEO of the company so he could purchase Power Plate North America Inc., which filed for reorganization earlier this month. But his efforts may be thwarted by a group led by former Power Plate CEO Lee Hillman, who has made a stalking horse bid of approximately $3 million for the company.
Hillman, who served as Power Plate’s CEO from 2006 to 2008 and as CEO, president and chairman of the board at Bally Total Fitness, Chicago, from 1996 to 2002, is heading a group called PPI Acquisitions LLC, a Delaware-based limited liability company. PPI Acquisitions executed an asset purchase agreement last Thursday.
High Ridge Partners, Chicago, which is facilitating the sale of Power Plate, will conduct an auction to consider competing bids for the company. The auction will take place at 10 a.m. on Nov. 7 at the offices of Stahl Cowen Crowley Addis LLC in Chicago.
Kevin Krantz, one of the principals of PPI Acquisitions and its general counsel, declined to comment on the sale to Club Industry.
Hammann, who took over for Steve Miller as Power Plate’s CEO in 2009, says he is still interested in purchasing Power Plate and that either he or a representative of his group plan to be in attendance at next week’s auction.
“We’ve got people lined up and should be fine,” Hammann says. “Hopefully, this all works out for the best.”
It is a busy time of year for Hammann, who also is the head football coach at Dyersville (IA) Beckman Catholic High School. The 10-1 Trailblazers won their Class 2A state playoff game on Monday and advanced to Friday’s state quarterfinal game.
“It’s all (happening) at the same time,” Hammann says. “It never fails.”