An affiliate of Atlanta-based private equity firm Roark Capital Group has made an equity investment in Anytime Fitness, a statement about the funding said. Financial details of the transaction were not disclosed.
Proceeds from the round will be used to hasten the expansion of Anytime Fitness in the US and around the world. Anytime Fitness Co-Founder and Chief Executive Officer Chuck Runyon and President and Co-Founder Dave Mortensen and the rest of the company's management team will still run the firm. As part of the deal, Roark Capital Managing Directors Erik Morris and Steve Romaniello have joined the Board of Directors of Anytime Fitness. They will be giving the firm strategic advice and support in the firm's operations, the statement said.
Runyon said in the statement, "We've been contacted by dozens of private equity firms over the years who have wanted to invest in the company. We've been extremely selective in seeking the right partner with a strategic and cultural fit. Roark is the preeminent private equity firm in franchising. They understand our philosophy and value the importance of supporting profitable and happy. Roark will help us improve system-wide performance, grow internationally and assist us in building our health and wellness platform."
Anytime Fitness is the fitness franchise that ranked first in the Entrepreneur magazine's annual Franchise 500 list for 2014. As one of the biggest and quickest growing franchise today, the co-ed franchise has opened at least 250 new clubs annually for the past six years. As a result, there are now over 2,400 Anytime Fitness clubs found in 19 countries serving the needs of its 2 million members, the statement said.
Roark Capital looks to invest in the franchise industry, looking for brands that have very promising prospects for growth. Anytime Fitness is the company's 31st investment in "franchise, multi-unit brands that collectively have nearly 18,000 locations and $16 billion in system wide revenues across 50 states in 71 countries," the statement said.
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