Private-equity firm TSG Consumer Partners has struck a deal for budget-friendly gym chain EoS Fitness.
The deal values EoS at about $1.5 billion, including debt.
TSG is set to take over EoS from private-equity firm BRS & Co., the firms announced Monday morning, confirming an earlier report by The Wall Street Journal.
Founded in 2014, EoS goes after middle-income customers with memberships starting as low as $9.99 a month. It has more than 175 locations across the U.S. that are open or close to opening, with its footprint concentrated in California, Arizona, Texas and Florida.
The clubs include amenities such as cold plunges, saunas and rooms where members can record workout routines for sharing on social media. EoS also offers a range of fitness classes.
EoS Chief Executive Rich Drengberg is expected to continue running the company and will retain a stake in the business.
Drengberg told the Journal that the company recently surpassed 1.5 million members, 500,000 of which joined in just the last two years.
Drengberg said EoS plans to have more than 250 gyms in the country by 2030. The company will also look to pursue merger and acquisition opportunities to scale, he said.
A flurry of fitness deals
Private-equity firms’ interest in gym chains has held steady with fitness remaining a priority for consumers.
Earlier this year, boutique fitness chain Barry’s Boot Camp received fresh backing from private-equity firm Princeton Equity Group, and Leonard Green & Partners acquired Crunch Fitness. Last year, L Catterton acquired a majority stake in Pilates chain Solidcore.
TSG, which has about $14 billion in assets under management, specializes in consumer investing. It has a record in the health-and-wellness space, with portfolio companies including CorePower Yoga and Planet Fitness.