NEW YORK - Rick Caro, president of New York's Management Vision Inc., and the Los Angeles-based investment firm of Brentwood Associates have created a new company, Racquetball and Fitness Clubs Inc. (RFC). The company's goal is to grow by acquiring existing, well-managed club clusters with strong presence in a local market, a history of financial success and with growth potential.
"We plan to accelerate our clubs' growth from clustered groups of two or three to groups of 10 or more, primarily through acquisition and limited new construction," David Wong, general partner of Brentwood Associates, said in a statement. "It's reasonable for us to expect annual revenue of $300 to $500 million over the next three to five years, which would place RFC among the nation's three largest club companies."
The first company to come under the RFC banner is Bruce Hendin's Rac-quet-ball and Fitness Clubs of San Antonio. RFC reports that the operational transition will be seamless. Hendin has chosen to retain a significant equity stake in RFC and will serve as president of the Texas region.
Currently, RFC is searching for a CEO, CFO and CIO. Caro, now serving as interim CEO, will assume full chairmanship responsibilities after the CEO is hired.