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Les Mills International
Les Mills International
Les Mills International
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UNITING THE WORLD OF FITNESS
Health Club Management

Health Club Management

News

F45 Training valued at US$1.4bn after IPO

HIIT chain F45 Training was valued at around US$1.4bn by IPO
The Australia-based franchised operator listed on the New York Stock Exchange
The company sold 18.75 million shares priced at US$16 each, raising around $300m
Shares have fallen to US$13.75 since trading began, with the NYSE also seeing an overall fall

F45's IPO on the New York Stock Exchange (NYSE) has revealed a strong appetite from investors, with 18.75 million shares sold, priced at US$16 each, raising around US$300m and giving a market value of around US$1.5bn at float.

IPO statements suggest the company – F45 Training Holdings Inc – released 20 per cent of its shares.

These are now trading at US$13.75 (at 20 July 2021), indicating a company value of US$1.29bn – a 15 per cent drop.

The franchise studio operator said the funds will be used to repay debt and fuel growth, as well as paying the purchase price for its acquisition of assets of the Flywheel indoor cycling studio business.

F45, which currently has nearly 1,500 studios in 63 countries, plans to open up to 7,000 studios in the US and 23,000 globally.

Founded in 2012, F45 is part-owned by actor Mark Wahlberg.

BACKGROUND

In 2019, Wahlberg and FOD Capital, a fund managed by Michael Raymond, led a private equity investment in F45 through MWIG, a private investment vehicle.

F45 announced its plans to list on the NASDAQ in June 2020, after securing a deal with Crescent Acquisition Corporation (CAC), a special purpose acquisition company.

The two companies then terminated their agreement in October, with F45 CEO Adam Gilchrist saying that approaching the public markets at the time "was not the right option for F45".

"We believe there is a significant opportunity to meaningfully expand our franchise studio footprint in the United States," F45 Training said at the time.

"As of March 31, 2021, we had 941 franchises sold and 518 total studios in the US.

"Prior to the COVID-19 pandemic, we had seen the pace of our US growth accelerate, with average net franchises sold per month increasing from 12 in 2017 to 18 in 2018 to 32 in 2019.

"Due to COVID-19, the average net franchises sold per month decreased in 2020 to 10.

"Based on current franchises sold in Australia per capita as of March 31, 2021, we believe there is long-term studio potential for us to open over 7,000 studios in the US.

"As of March 31, 2021, we had 630 franchises sold outside of our core markets of the United States and Australia. Based on an extrapolation of current franchises sold in Australia per capita as of March 31, 2021, we believe there is a long-term global opportunity for over 23,000 studios, with a potential for approximately 16,000 studios outside of the US market.

"We believe we can continue to grow our international presence through our existing franchising strategy and by opportunistically pursuing master franchising agreements to sell select territories to experienced, local partners."

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
F45's IPO on the New York Stock Exchange (NYSE) has revealed a strong appetite from investors, with 18.75 million shares sold, priced at US$16 each, raising around US$300m and giving a market value of around US$1.5bn at float.
PTS,HAF,FIT,IND
2021/THUMB348160_832454_435561.jpg
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Catalogue Gallery
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Directory
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Diary dates
01-03 Feb 2022
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07-10 Apr 2022
Exhibition Centre , Cologne, Germany
Diary dates
15-16 Jun 2022
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News

F45 Training valued at US$1.4bn after IPO

HIIT chain F45 Training was valued at around US$1.4bn by IPO
The Australia-based franchised operator listed on the New York Stock Exchange
The company sold 18.75 million shares priced at US$16 each, raising around $300m
Shares have fallen to US$13.75 since trading began, with the NYSE also seeing an overall fall

F45's IPO on the New York Stock Exchange (NYSE) has revealed a strong appetite from investors, with 18.75 million shares sold, priced at US$16 each, raising around US$300m and giving a market value of around US$1.5bn at float.

IPO statements suggest the company – F45 Training Holdings Inc – released 20 per cent of its shares.

These are now trading at US$13.75 (at 20 July 2021), indicating a company value of US$1.29bn – a 15 per cent drop.

The franchise studio operator said the funds will be used to repay debt and fuel growth, as well as paying the purchase price for its acquisition of assets of the Flywheel indoor cycling studio business.

F45, which currently has nearly 1,500 studios in 63 countries, plans to open up to 7,000 studios in the US and 23,000 globally.

Founded in 2012, F45 is part-owned by actor Mark Wahlberg.

BACKGROUND

In 2019, Wahlberg and FOD Capital, a fund managed by Michael Raymond, led a private equity investment in F45 through MWIG, a private investment vehicle.

F45 announced its plans to list on the NASDAQ in June 2020, after securing a deal with Crescent Acquisition Corporation (CAC), a special purpose acquisition company.

The two companies then terminated their agreement in October, with F45 CEO Adam Gilchrist saying that approaching the public markets at the time "was not the right option for F45".

"We believe there is a significant opportunity to meaningfully expand our franchise studio footprint in the United States," F45 Training said at the time.

"As of March 31, 2021, we had 941 franchises sold and 518 total studios in the US.

"Prior to the COVID-19 pandemic, we had seen the pace of our US growth accelerate, with average net franchises sold per month increasing from 12 in 2017 to 18 in 2018 to 32 in 2019.

"Due to COVID-19, the average net franchises sold per month decreased in 2020 to 10.

"Based on current franchises sold in Australia per capita as of March 31, 2021, we believe there is long-term studio potential for us to open over 7,000 studios in the US.

"As of March 31, 2021, we had 630 franchises sold outside of our core markets of the United States and Australia. Based on an extrapolation of current franchises sold in Australia per capita as of March 31, 2021, we believe there is a long-term global opportunity for over 23,000 studios, with a potential for approximately 16,000 studios outside of the US market.

"We believe we can continue to grow our international presence through our existing franchising strategy and by opportunistically pursuing master franchising agreements to sell select territories to experienced, local partners."

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
F45's IPO on the New York Stock Exchange (NYSE) has revealed a strong appetite from investors, with 18.75 million shares sold, priced at US$16 each, raising around US$300m and giving a market value of around US$1.5bn at float.
PTS,HAF,FIT,IND
2021/THUMB348160_832454_435561.jpg

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UK Health clubs, gyms, hotels, pubs and other leisure businesses will all receive a 50
Fitness First UK has changed its pricing structure and is now offering a flexible membership
Boutique operator 1Rebel has launched its first 1Rebel Labs Studio at its club in Holborn.
The Local Government Association (LGA) has called on the UK government to invest £875m in
Anthony Hamilton, the father of F1 racing driver Lewis Hamilton, is launching a fitness equipment
The pandemic has had an "unprecedented" impact on physical activity levels in England, with 1
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FIBO Exhibition
FIBO Exhibition
1 - 20 of 12,056
HCM Magazine
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Vigorous exercise has been shown to be the equivalent of an entry-level dose of an antidepressant such as sertraline
HCM Magazine
Statistics
This year’s edition of the IHRSA Global Report which addresses performance from 2020, is a valuable record of the tremendous impact of the COVID-19 pandemic on the sector, creating a benchmark from which to understand the recovery. Kristen Walsh reports for HCM
HCM Magazine
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In this issue, we’re focusing on sharing insights and thought leadership to highlight opportunities for the development of the sector in terms of both markets and offerings, says Liz Terry, HCM editor
HCM Magazine
Insight
Research firm Qualtrics surveyed 12,157 consumers across 15 countries in seven languages to create the Les Mills 2021 Global Fitness Report, highlighting the ways consumers are choosing to work out as we emerge from the pandemic. Jak Phillips reports
HCM Magazine
Active ageing
David Minton says the healthy movement industry is ten times bigger than the health club sector, and the care industry four times bigger and ask why we’re not rushing to collaborate?
HCM Magazine
Sponsored
Les Mills is launching a new digital network called Les Mills Connect to help clubs build back better and emerge from the pandemic with a stronger business
HCM Magazine
Sponsored
Billed as the ‘2021 Experience Tour’, Egym has taken its connected gym floor experience on the road around the UK
HCM Magazine
HCM magazine
Fuel the debate about issues and opportunities across the industry. We’d love to hear from you – [email protected]
HCM magazine
I’d like to see the gym sector help champion the social prescribing agenda, as a route to getting more people engaged in physical activity
HCM magazine
Our equipment doesn't consume power but does generate it, recycling human energy
HCM magazine
Focusing on dieting has failed to offset the rising tide of obesity, say researchers from the Universities of Arizona and Virginia. A focus on fitness gives better health outcomes
HCM magazine
Our competition need to fasten their seatbelts
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In the last issue of HCM, we checked with big box operators in the UK to see how trading has been going since restrictions were lifted. This month we turn our attention to boutiques and urban studios to find out how they’re faring. Kath Hudson reports
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HCM People

Danielle Obe

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Featured supplier news: Life Fitness introduces Integrity SL, the next generation LED console
Life Fitness has unveiled the new Integrity SL, its connected LED console designed for the Integrity Series cardio portfolio.
Featured supplier news
Featured supplier news: Power Plate teams up with Myzone for a new exercise experience
Power Plate has teamed up with Myzone to provide its community with new class experiences and the opportunity to offer rewards based on effort, every time they move.
Featured operator news
Featured operator news: Being active helps Parkwood Leisure customers save the NHS £16m
Parkwood Leisure, one of the UK’s leading public leisure facilities operators, helped prevent more than 7,000 cases of stroke, dementia, depression and type 2 diabetes in 2019, saving the NHS £16 million, a new social value report has shown.
Featured operator news
Featured operator news: Everyone Active generates £342m in social value
Award-winning leisure operator Everyone Active generated £342million in social value at its sites across the country in 2019/20.
Company profiles
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Company profiles
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Catalogue Gallery
Click on a catalogue to view it online
Directory
Salt therapy products
Himalayan Source: Salt therapy products
Management software
Premier Software Solutions: Management software
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Whole body cryotherapy
Art of Cryo: Whole body cryotherapy
trade associations
International SPA Association - iSPA: trade associations
Exercise equipment
Matrix Fitness: Exercise equipment
Red Light Therapy
 Red Light Rising: Red Light Therapy
Wearable technology solutions
MyZone: Wearable technology solutions
Fitness equipment
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Architects/designers
Zynk Design Consultants: Architects/designers
Property & Tenders
Welwyn Garden City
Welwyn Hatfield Borough Council
Property & Tenders
Newport, Shropshire
Lilleshall Sports Academy
Property & Tenders
Diary dates
01-03 Feb 2022
Coventry Building Society Arena, Coventry, United Kingdom
Diary dates
07-10 Apr 2022
Exhibition Centre , Cologne, Germany
Diary dates
15-16 Jun 2022
ExCeL London, London, United Kingdom
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates
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Les Mills International
Les Mills International