EoS Fitness is exploring a sale that would value the fast-growing gym chain at $1 billion, including debt, according to a report. If a deal gets done, it would mark the latest big-money transaction in the booming high-value, low-price (HVLP) gym sector.
According to anonymous sources cited by Reuters, EoS is working with investment bank Piper Sandler to sound out interest from potential buyers, including private equity firms. EoS was acquired by private equity firm BRS & Co. in 2015.
Since then, EoS has established itself as one of the fastest-growing gym chains in America, with over 175 locations open or on the way in Texas, Florida, California and states across the Southwest. Unlike many of its low-price gym rivals, EoS doesn’t sell franchise licenses, instead owning its gyms at the corporate level.
The “Better Gym. Better Price” brand, which offers memberships starting as low as $9.99/month, has said it’s aiming to open at least 250 locations by 2030. In June, Bloomberg reported that EoS was looking to secure $100 million or more in private funding to drive growth.
EoS isn’t the only HVLP gym brand that’s caught the attention of private equity investors.
Earlier this week, Leonard Green & Partners announced it acquired a majority stake in HVLP gym giant Crunch Fitness from TPG. The price of that deal wasn’t publicly disclosed, but in December, a report surfaced that TPG was valuing Crunch at more than $1.5 billion, including debt.
Investors are highly bullish on the HVLP gym sector, citing recurring revenue from memberships and strong value for money. So-called “HVLP 2.0” concepts like EoS and Crunch offer amenities including premium strength training equipment, infrared saunas and group fitness classes for prices that typically range between $10 and $40/month.
According to data from the Health & Fitness Association (HFA), young Americans are joining HVLP gyms in large numbers, driving overall membership growth for the fitness industry.
EoS didn’t immediately respond to Athletech News’ request for comment for this story.
