NEWINGTON, NH -- The proposed Planet Fitness minority sale to private equity firm Goode Partners LLC will not happen.
The deal fell through around the time of the Planet Fitness franchisee conference that was held May 6-8 in Las Vegas, according to sources. No announcement of a deal between Planet Fitness and Goode Partners was made during the conference, sources confirm.
Planet Fitness, Newington, NH, has not returned calls seeking comment. David Oddi, co-founder and partner of Goode Partners, New York, would not comment on the situation when reached by Club Industry.
“Unfortunately, because of confidentiality reasons, I really can’t comment,” Oddi said.
In March, sources told Club Industry that Planet Fitness was in the process of completing a sale with Goode Partners and that a letter of intent had been signed. In the proposed sale, Planet Fitness CEO Mike Grondahl, his brother, Marc Grondahl, and COO Chris Rondeau were expected to retain a majority interest in the company.
“I know they were very close,” one source says. “My impression is it was a done deal. It really surprised me [that the deal fell through]. I’m sure they have their reasons.”
In April, Planet Fitness announced it had hired Jayne Conway as its new chief financial officer. Conway was previously the CFO of Gulf Oil LP and spent 10 years with Dunkin’ Brands. Marc Grondahl had served as Planet Fitness’ CFO but made way for Conway and retained part ownership of the company.
One source said that Conway was placed at Planet Fitness by Goode Partners in preparation for the proposed sale.
“You have to get that from the company,” Oddi said, referring to Planet Fitness.
This is the second time that a proposed sale involving Planet Fitness has fallen through, one source says.