Planet Fitness (NYSE: PLNT) is set to acquire Sunshine Fitness, an operator that owns over 100 Planet Fitness clubs within the U.S., in an $800 Million cash and stock deal. The company will be funding the cash portion of the deal amid the sale of securitized notes and accessible cash. The agreement is expected to be finalized during the first quarter of 2022.
The American franchisor revealed that the deal is expected to add to its earnings in the low-double-digit percent within 2022. Furthermore, the acquisition will permit the company to branch out and diversify throughout more geographies, said Chief Executive Chris Rondeau. Sunshine FItness is primarily situated in the Southeast, in states such as South Carolina, North Carolina, and Florida.
“Owning corporate stores is an important part of our strategy, as it gives us both relevancy and credibility when making decisions that impact the entire system. Additionally, joining our corporate team is a management team that has built some of the highest store-level profit-generating locations in our system, which will enhance our corporate store leadership and capabilities,” said Rondeau.
Sunshine fitness was the very first Planet Fitness franchisee and has been backed by TSG Consumer Partners since 2017. Co-founder and CEO of Sunshine Fitness, Shane McGuiness, will be overseeing operations of the merged company.
“Partnering with TSG has been an incredible experience,” said McGuiness. “Their support for our business and growth never wavered, and it has led to this next exciting moment in our evolution as an organization.”
Planet fitness ended the fiscal year 2021 with 15.2 million members, a 1.7 million-member surge compared to the previous year.