Buyout firm L Catterton to acquire majority stake in pilates chain Solidcore

Industry:    3 months ago

L Catterton, the private equity firm backed by luxury goods giant LVMH, on Wednesday clinched a deal to acquire a majority stake in pilates studio operator Solidcore from its current owners.

The deal values Solidcore at between $600 million and $700 million, according to a person familiar with the matter. L Catterton will own Solidcore through its Flagship Fund.

The company, known for its challenging 50-minute workout classes on its “sweatlana” reformer machines, had been exploring a sale with investment banks North Point and Piper Sandler, Reuters reported in May.

“Consumers understand that movement is medicine, with daily strength training as a key part of their regimen for living a longer, healthier life. Solidcore fits squarely into this long-term evolution, and we believe there is significant runway ahead for expansion both domestically and internationally as more consumers discover the category and its long-term benefits,” said Marc Magliacano, a managing partner at L Catterton’s Flagship Fund, in a statement seen by Reuters.

L Catterton, which has $35 billion of assets under management, is an experienced investor in the fitness industry. Earlier this week, L Catterton led a $200 million funding round at EGYM, valuing the Munich-based connected fitness startup at more than $1.2 billion.

L Catterton has also invested in upscale fitness club Equinox, the at-home fitness company Tonal, and fitness software companies iFIT and ClassPass. It used to be an investor in Peloton, cycling gym Flywheel, and barre studio Pure Barre.

Founded in 1989, the buyout firm has made over 275 investments in high-profile consumer brands such as German sandal maker Birkenstock.

Solidcore’s founder Anne Mahlum launched the company in 2013 and sold her stake in the fitness chain last year. It is currently owned by investors VMG Partners, Peterson Partners and Kohlberg & Company.

Washington, D.C.-based Solidcore said on Wednesday it has about 130 locations across 25 states and the District of Columbia. Last year, it said it plans to expand internationally to have 250 studios globally by 2028.

The fitness and wellness industry has traditionally been attractive to private equity investors, due to the steady and predictable cash flows businesses in the sector generate.

Gym chains and workout studios globally have witnessed a rebound in their fortunes since the COVID-19 pandemic subsided, as more consumers resumed in-person workout sessions.

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