By Spencer Feingold
Crunch Fitness, the “original no judgment” gym, has been acquired by the investment firm TPG Growth, the companies announced on Monday.
TPG Growth’s purchase includes Crunch’s company-owned facilities as well as its 300-plus franchised gyms around the world.
An acquisition from an investment firm “validates that what you’re doing is good work,” Jim Rowley, the CEO of Crunch Fitness, told Cheddar, hours after the announcement was made. “What we have established with our franchise company and our own company is the point of inflection where we’re getting ready for really explosive growth.”
The financial terms of the acquisition were not disclosed.
Since its founding exactly 30 years ago in New York City, Crunch has grown to include 1.3 million members with gyms in 29 U.S. states and Puerto Rico, as well as, across Australia, Canada, and Spain. The gym began franchising its brand in 2010, a year after Rowley and the company’s chairman Mark Mastrov took over operations. Rowley and Mastrov were previously executives at 24 Hour Fitness.
“With TPG, we’ve found a partner who understands our vision and industry. They have a long history of working with companies to build authentic brands, and we’re excited to welcome them to the Crunch team,” Mastrov said in a statement.
With the injection of capital, the company said it expects to double in size in the next five years and take advantage of the growing interest in the health and fitness industry, which was worth over $36 billion in 2019 and had an annual growth rate of 3.5 percent in the last five years, according to the market research group IBISWorld.
“Consumers across every age group are prioritizing health and wellness more than ever before,” Chris Kelly, an investment head at TPG Growth, said in a statement. “Crunch is capturing that consumer interest by providing a unique, high-quality and affordable gym experience.”