FARGO, ND - September 29, 2017 - PF Baseline Fitness, a high-growth franchisee of Planet Fitness health clubs, is proud to announce that it has partnered with Freeman Spogli & Co., a leading private equity investment firm. PF Baseline Fitness' existing management team will continue to lead the company and will retain a significant minority equity stake in the business going forward. Specific terms of the transaction were not disclosed.
"We are thrilled to partner with Freeman Spogli," said Scott Majkrzak, co-founder and CEO of PF Baseline Fitness. "Our partnership will allow us to accelerate our growth in our existing development territories and in new markets. Freeman Spogli's expertise and experience in high-growth retail and franchising will be very helpful as we invest in our existing clubs, continue to improve the member experience and pursue a sound growth strategy."
Formed in 2009 and headquartered in Fargo, ND, PF Baseline Fitness currently owns and operates 22 Planet Fitness clubs across six states (Iowa, South Dakota, North Dakota, Minnesota, Illinois, and California) and is on track to open at least two more clubs by the end of 2017. Planet Fitness Inc., the franchisor, is one of the largest and fastest-growing franchisors and operators of fitness centers in the U.S. with more than 1,400 stores system-wide and over 10 million members. The concept caters to first-time or casual gym users by offering members a low-cost, high-quality experience. The brand is known for its commitment to fostering a non-intimidating "Judgement Free Zone®" that is welcoming to all.
"The company's talented and experienced management team, led by Scott Majkrzak, has done a tremendous job building PF Baseline Fitness into a leading franchisee of Planet Fitness clubs," said Todd Halloran, a Partner at Freeman Spogli. "We have a long-standing relationship with PF Baseline Fitness' Executive Chairman, Jeff Majkrzak, and are impressed with Planet Fitness' scale and strong customer value proposition. PF Baseline Fitness is uniquely positioned within the large and growing fitness sector given its first-class operational capabilities and strategic focus on developing in smaller markets where Planet Fitness has a particularly strong market position."
Winthrop & Weinstine, P.A. provided legal counsel to PF Baseline Fitness and Morgan, Lewis & Bockius LLP provided legal counsel to Freeman Spogli.
About PF Baseline Fitness
Headquartered in Fargo, ND, PF Baseline Fitness is a franchisee of Planet Fitness clubs. The company's first club opened in Fargo, North Dakota in 2009. Over the last five years, the company has grown its unit base from seven to 22 clubs across six states (Iowa, South Dakota, North Dakota, Minnesota, Illinois, and California).
About Freeman Spogli & Co.
Freeman Spogli & Co. is a private equity firm dedicated exclusively to investing in and partnering with management in consumer-related and distribution companies in the United States. Since its founding in 1983, Freeman Spogli has invested over $4 billion in 58 portfolio companies with aggregate transaction value of over $22 billion, and is currently making investments from FS Equity Partners VII, L.P. Freeman Spogli has offices in Los Angeles and New York. For additional information, visit www.freemanspogli.com.