Snap Fitness Announces Minority Equity Investment by Summit Partners
Leading Franchisor of Compact, State-of-the-Art 24/7 Fitness Centers Poised for Continued Growth
CHANHASSEN, MN and BOSTON, MA--(Marketwire - June 3, 2008) - Snap Fitness, Inc., the rapidly growing franchisor of compact, 24/7 express fitness clubs, today announced it has received a minority equity investment from Summit Partners, a private equity and venture capital firm that has raised more than $11 billion since inception. Terms of the transaction were not disclosed.
Founded in 2003 by CEO Peter Taunton, Snap Fitness offers fitness clubs that emphasize fast, convenient and affordable workouts in neighborhoods across North America. A typical 2,500-square-foot facility features the same quality equipment as traditional big-box health clubs, but in a smaller, non-intimidating setting and at a fraction of the membership price.
Snap Fitness is experiencing phenomenal growth with more than 1,500 locations across the United States and Canada, with some 30-40 new stores added monthly. Overseas expansion is projected for later this year.
The company is the leader in promoting member-friendly policies and value-added benefits. It offers month-to-month memberships as opposed to long-term contracts, and allows memberships to be frozen for up to three months a year with no penalty. In addition, the company provides members with a host of products and services, such as an online wellness assessment and customized supplements, designed to give members better results and more value for their money.
"Our relationship with Summit Partners will allow us to fuel our international expansion operations, fortify our brand, and lay the groundwork for long-term growth," said Peter Taunton, Snap Fitness' Founder and CEO. "This partnership will allow us to realize Snap Fitness' true growth potential and stay true to our focus of providing our members a high-quality, high-value fitness experience, while finding ways to support the success of our franchisees. We look forward to working closely with Summit to leverage their expertise in helping rapidly growing companies."
"Snap Fitness is led by a superior management team that understands the growing demand for a convenient and affordable health club experience," said Sonya Brown, a Principal with Summit Partners. "The company provides a platform, a brand, and a support infrastructure that enables franchisees to offer a product and service second-to-none in their market space. We believe Snap Fitness is poised for continued strong growth, and are delighted to be working with Peter Taunton and his team." Ms. Brown, along with Summit Partners Vice President Peter Rottier, will join the Snap Fitness Board of Directors.
About Snap Fitness, Inc.
Fresh off its #3 ranking on Entrepreneur Magazine's list of Top New Franchises and recently ranked #1 on Franchise Market's Top 100 New Franchises, Snap Fitness (www.snapfitness.com) is experiencing phenomenal growth with more than 1,500 locations sold nationwide, newly opened locations in Canada and some 30-40 new stores added monthly. Founded in 2003 by CEO Peter Taunton, the Chanhassen, Minn.-based franchisor offers compact, state-of-the-art, 24/7 express fitness clubs that emphasize fast, convenient and affordable workouts in neighborhoods across America.
About Summit Partners
Summit Partners (www.summitpartners.com) provides private equity and venture capital for growth companies. Founded in 1984, Summit has raised more than $11 billion in capital and has provided equity, recapitalization, and management buyout financing to more than 300 growing companies across a range of industries. Of these companies, nearly 125 have completed public offerings and more than 110 have been acquired through strategic mergers and sales. Summit Partners has offices in Boston, Palo Alto, and London.
Summit Partners seeks to work with outstanding management teams that have self-financed their companies to profitability and market leadership. Notable consumer products and services investments include 3-Day Blinds, Belkin Corporation, Champion Windows, Harris Research (Chem-Dry), MDVIP, and Physicians Formula.
The business of Summit Partners in the UK is regulated by the Financial Services Authority. Summit Partners Limited is registered in England and Wales. The registered number is 4141197, and the registered office is located at 20-22 Bedford Row in London, WC1R 4JS, UK. In the US, Summit Partners operates as an SEC-registered investment advisor. This document is intended solely to provide information regarding Summit Partners' potential financing capabilities for prospective portfolio companies.