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Snap Fitness
Private equity firm Summit Partners plans to sell its stake in Snap Fitness Inc. Snap founder and CEO Peter Taunton said the move will not affect the company's operations.
Summit Partners[1] plans to sell its minority stake in Snap Fitness Inc.[2] , likely to another private equity firm.
"It's the nature of private equity," Snap founder and CEO Peter Taunton[3] said when reached on his cell phone Thursday afternoon. "Most of them, when you get to the valuation of a company like ours, they don't buy and hold. Five or six years is typically the fund life."
Boston-based Summit Partners made its initial investment in 2008[4] , at which time Snap had 1,530 health clubs open or under development in North America. That figure has now climbed to 2,100 in 12 countries.
Chanhassen-based Snap anticipates revenue of approximately $70 million in 2013, up from about $48.6 million in 2012[5] . Earlier this year, the company acquired[6] Steele Fitness[7] , an Edina-based boutique gym chain that focuses on personal training and wellness. (Following the deal, Steele launched its own line of 24-hour clubs[8] .)
RELATED: Snap Fitness ranks No. 44 on the 2014 Franchise 500 list[9] .
Snap is in talks with several companies that are interested in buying Summit's minority stake, Taunton said.
"As you can imagine, a company like ours has a lot of demand," he said. "It's a great company and we've grown it four-fold in the past five years. It's a growth company, so there's a lot of demand for it on the private equity side."
Taunton declined to disclose the size of Summit's interest, but said a sale will not impact the chain's operations.
"I'm still the founder, CEO and president," he said. "I'm the largest single shareholder of the company."
Reuters' PEHub was the first to report this story[10] , citing anonymous banking sources.
John Vomhof Jr. covers retail, hotels, sports business, advertising, public relations and media. He's also on the air on WCCO-AM 830 with Dave Lee daily at 8:45 a.m. and on Fox 9 TV Fridays at 5:30 a.m. & 6:30 a.m.
References
- ^ Summit Partners (www.bizjournals.com)
- ^ Snap Fitness Inc. (www.bizjournals.com)
- ^ Peter Taunton (www.bizjournals.com)
- ^ made its initial investment in 2008 (www.bizjournals.com)
- ^ about $48.6 million in 2012 (www.bizjournals.com)
- ^ acquired (www.bizjournals.com)
- ^ Steele Fitness (www.bizjournals.com)
- ^ launched its own line of 24-hour clubs (www.bizjournals.com)
- ^ Snap Fitness ranks No. 44 on the 2014 Franchise 500 list (www.bizjournals.com)
- ^ report this story (www.pehub.com)
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