TSG-backed Planet Fitness files for $100 mln IPO

The health club chain, which is a portfolio company of TSG Consumer Partners, has filed for a $100 million IPO, according to an SEC filing. 

The filing shows that “TSG Funds” owns more than 5 percent of the company, but it does not state the exact percentage of ownership. 

TSG, which declined to comment on the IPO, invested in Planet Fitness with TSG 6, according to the filing. TSG 6, a vintage 2012 fund that raised $1.33 billion, generated an IRR of 46.21% and total-value-to-paid-in (TVPI) multiple of 1.77x as of Dec. 31, according to PE performance data provider Bison.

The number of shares to be offered by Planet Fitness as well as the stock’s pricing terms have yet to be set. The company plans on listing the stock on the New York Stock Exchange under the ticker symbol PLNT.

J.P. Morgan, BofA Merrill Lynch, Jefferies and Credit Suisse are serving as the lead underwriters.

In January 2013, TSG said it was making an undisclosed investment in Planet Fitness, as previously reported in Buyouts. At the time of the deal, it was stated that the capital infusion would be used to help the company expand its locations, build up the brand and support its franchisees.

According to the SEC document, the 2014 revenue for Planet Fitness was $279.8 million. The company also said it has “more than 7.1 million members and 976 stores in 47 states, Puerto Rico and Canada as of March 31, 2015.” Of those 976 stores, 919 are franchised and 57 are corporate-owned, the document states.

Based in Newington, N.H., Planet Fitness was founded in 1992 by brothers Michael and Marc Grondahl. Chris Rondeau presently serves as CEO. The IPO filing doesn’t disclose the ownership stakes of the Grondahls or Rondeau, but Michael Grondahl told publication Club Industry that the deal with TSG allowed him, his brother and Rondeau to collectively retain 25 percent ownership of the company.

In addition to Planet Fitness, TSG has backed a number of well-known consumer brands, including Famous Amos Cookies, Spic and Span and Smart Balance. TSG founder Chuck Besserman is currently at the helm as CEO while Jamie O’Hara is president.