Bain Capital Double Impact to return 3.1x on Impact Fitness

Bain Capital Double Impact is set to make 3.1x its money on the sale of Impact Fitness to Morgan Stanley Capital Partners, sources familiar with the deal told Buyouts.

Bain Capital and Bridges Fund Management, which had a minority stake, both fully exited their stakes in the company. The deal closed on June 6, the sources said.

Harris Williams advised Impact Fitness and Bain Capital on the sale.

Impact Fitness, of Brighton, Michigan, is a leading franchise of Planet Fitness, with 29 clubs across the United States.

The investment was the first one made from the Bain Capital Double Impact fund, which closed on $390 million in 2017. Bain Capital may launch its second Double Impact Fund later this year, sources told Buyouts in March.

The vision behind Impact Fitness was to provide underserved communities with low-cost access to health clubs, said Peter Spring, managing director at Bain Capital Double Impact fund.

“The Planet Fitness model, which has very low-cost membership, was very appealing because it allows more people to join the gym in locations that are also called ‘gym deserts,’” he said. “These locations enable more first-time gym users.”

Spring declined to comment on Bain Capital’s return on the investment.

Aaron Sack, head of Morgan Stanley Capital Partners, said the acquisition of Impact Fitness is in line with the firm’s middle-market strategy to invest in businesses off the beaten track across geographies.

Bridges Fund Management did not respond to a request for comment.

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