Planet Fitness will acquire its largest franchisee, Sunshine Fitness, in an $800 million deal that will beef up the company’s presence in the Southeast. The Hampton, NH-based company said the acquisition is coming on the heels of strong growth in 2021, in which it added 1.7 million new customers for a total of 15.2 million members. Gyms were initially hit hard by the pandemic in 2020 when some 9,100 gyms – or a quarter of the industry — closed for good. But many were also able to pivot by offering online classes and fitness instruction. Last year, gyms began to recover, though it remains to be seen how the Omicron COVID-19 variant affects the peak membership season at the beginning of the year when people make New Year’s resolutions to shed pounds. “There is tremendous long-term untapped opportunity for our brand to get people off the couch,” Chris Rondeau, chief executive of Planet Fitness said in a statement, “which is why, as a leader in the fitness industry, we are making this strategic investment for the future.” Sunshine Fitness opened its first location in Altamonte Springs, Fla in 2003 and has 114 locations in Florida, Alabama, Georgia, South Carolina and North Carolina today. The acquisition will be funded with a combination of cash and stock and is expected to add to Planet Fitness’ earnings, the company said. Planet Fitness will own 10 percent or 200 of its 2,254 stores companywide when the transaction is completed. Shane McGuiness, co-founder and CEO of Sunshine Fitness, who has been an owner and operator in the Planet Fitness system for nearly 20 years, will oversee operations of the combined corporate store portfolio. San Francisco-based private equity firm, TSG Consumer Partners, acquired a majority stake in Sunshine Fitness in 2017 after previously backing Planet Fitness. It began exiting Planet Fitness in 2015, when it became a publicly held company, but will become a shareholder again with the Sunshine Fitness acquisition, the companies said. Shares of Planet Fitness were up by nearly 2 percent to $91 on Tuesday.
