Up to $50 Million from GE Capital to Fuel Growth at Planet Fitness
Planet Fitness reached agreement today with GE Capital on a $40 million credit facility that will help fuel the franchise company's expansion. The facility may be increased to $50 million under certain conditions.
Newington, NH (PRWEB) October 1, 2010 -- Planet Fitness, whose low-price gyms have struck a chord with consumers and revolutionized an industry once dominated by big-box health clubs, reached agreement today with GE Capital on a $40 million credit facility that will help fuel the franchise company's expansion. The facility may be increased to $50 million under certain conditions.
"Because of GE Capital's deep domain expertise, they're smart about loan underwriting and willing to make significant financial commitments to growth businesses," said Jayne Conway, chief financial officer of Planet Fitness. "This provides us with both the liquidity and flexibility we need for our day-to-day operations and to foster our growth plans."
Planet Fitness, which topped $500 million in system-wide revenue in 2009, has for three straight years made Inc. magazine's list of the fastest-growing private businesses in America. The company has created the most profitable concept in the $19 billion North American fitness industry by combining an extremely low-price model - memberships are just $10 a month - with a no-pressure Judgement Free Zone®.
"Providing capital to rapidly growing companies is one of our specialties," said Tom Quindlen, president and chief executive officer of GE Capital, Corporate Finance. "This means working closely with clients to understand their needs, finding the right solution, and delivering what you promise."
Added Planet Fitness CEO Michael Grondahl, "Shut the TV off. Don't listen to fear-mongers. With great companies like GE and Planet Fitness, America will be just fine."
Founded in 1992, New Hampshire-based Planet Fitness consisted of just four gyms in New Hampshire when it began franchising in 2003. Today the company has a national footprint - more than 350 locations in 38 states, over 1,000 units sold in the U.S. and in Puerto Rico, and an ad campaign heard and seen nationally on the "Imus in the Morning" radio show and on Fox Business Channel.
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