Planet Fitness CEO Mike Grondahl has told Club Industry that the deal between his company and private equity firm TSG Consumer Partners is done.
Grondahl would not disclose the amount of the investment by TSG.
“We had over 20 bidders that were interested and made offers in the past 12 months, and we found an awesome group,” Grondahl told Club Industry today in an email. “It was love at first sight!”
Grondahl confirmed an earlier report published by Norm Cates in Club Insider that Grondahl, his brother, Marc Grondahl, and Chris Rondeau—all co-owners of Planet Fitness—will retain 25 percent ownership of the Newington, NH-based company.
An email to Pierre LeComte, a managing director at TSG Consumer Partners, was not immediately returned. TSG has corporate offices in San Francisco and New York. A filing with the Federal Trade Commission was made earlier this month.
Both Grondahl and an industry source say that TSG has lined up a $100 million credit line to loan to Planet Fitness franchisees for expansion. Planet Fitness’ national advertising fund will be nearly $1 million per month, according to the source.
“This deal will make us twice as strong,” Grondahl said.
Planet Fitness had 520 clubs at the end of 2011, according to the company’s Franchise Disclosure Document. The company has opened about 130 clubs this year and is expecting to open 200 clubs in 2013, according to a source.