Pilates studio operator Solidcore is exploring options including a potential sale that could value the fitness chain at more than $750 million, including debt, people familiar with the matter said on Thursday.
The company, known for its challenging 50-minute workout classes on its “sweatlana” reformers, is working with investment banks North Point and Piper Sandler on its sale process, the sources said, requesting anonymity as the discussions are confidential.
For 2024, the company expects to generate about $50 million of earnings before interest, taxes, depreciation and amortization and roughly $150 million of revenue, the sources said.
Founder Anne Mahlum launched Solidcore in 2013 and sold her stake in the fitness chain last year. The company is currently owned by investors VMG Partners, Peterson Partners and Kohlberg & Company.
Solidcore, Piper Sandler, VMG, Kohlberg and Peterson declined to comment. North Point did not immediately respond to requests for comment.
Washington, D.C.- based Solidcore has over 100 locations in 25 states, and plans to expand internationally to have 250 studios globally by 2028, it said last year.
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.
Another fitness chain Barry’s Bootcamp is also exploring a sale, Bloomberg reported last month.
Source: Reuters.com