Abigail Somerville
NEW YORK (Reuters) – Pilates studio operator Solid Core is weighing options including a possible sale that could value the fitness chain at more than $750 million, including debt, the company said on Tuesday. A person familiar with the matter said on Thursday.
The company, known for its challenging 50-minute workout classes on “Sweatrana” reformers, is working with investment banks Northpoint and Piper Sandler on the sale process, the people said, and discussions are confidential. The person requested anonymity due to the nature of the matter.
In 2024, the company expects to have earnings before interest, taxes, depreciation and amortization of about $50 million and sales of about $150 million, according to people familiar with the matter.
Founder Anne Mahlum launched Solid Core 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 a request for comment.
Washington, D.C.-based Solidcore has more than 100 locations in 25 states and plans to expand internationally to 250 studios worldwide by 2028, the company announced last year.
The fitness and wellness industry has traditionally been attractive to private equity investors because of the stable and predictable cash flow that companies in this sector generate.
Since the coronavirus pandemic subsided, gym chains and workout studios around the world have seen a turnaround as more consumers resumed in-person workout sessions.
Bloomberg reported last month that another fitness chain, Bally’s Bootcamp, was also considering a sale.
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