Jan. 11—Planet Fitness has signed an $800 million cash and stock deal to acquire its first franchisee, which operates more than 100 Planet Fitness locations in the Southeast.
Sunshine Fitness Growth Holdings LLC owns 114 fitness centers in Alabama, Florida, Georgia, North Carolina and South Carolina. Those stores will be combined into the current Planet Fitness company-owned portfolio, which is predominantly located in the Northeast, Planet Fitness said in a press release Tuesday.
Shane McGuiness, co-founder and CEO of Sunshine Fitness, who has been an owner and operator of Planet Fitness locations for nearly 20 years, will oversee operations of the combined corporate store portfolio, the release said.
Since 2017, Sunshine Fitness has been backed by TSG Consumer Partners, which had a majority stake in Planet Fitness from 2012 to 2017. TSG acquired a majority stake in Sunshine Fitness after exiting its investment in Planet Fitness, two years after Planet Fitness began trading publicly on the New York Stock Exchange.
After the transaction is completed, Planet Fitness will operate more than 200 corporate stores, about 10% of its total system, the company said.
"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," said Chris Rondeau, chief executive officer of Planet Fitness, in a statement.
Planet Fitness (NYSE: PLNT) ended fiscal year 2021 with 15.2 million members, an increase of 1.7 million members over the past 12 months, the company said.
In 2021, 132 new stores were opened, bringing the total count to 2,254 worldwide. Currently, 98 percent of Planet Fitness' stores are open, including 100% of its U.S. locations, the company said.