Australian fitness giant F45 to go public in US after merger
Australian fitness chain F45 Training has struck a deal to go public in the US by merging with Crescent Acquisition, a company backed by investment firm Crescent Capital.
The deal is slated to value the combined companies at $US845 million ($1.23 billion) including debt, according to a statement on Wednesday (US time). The transaction is expected to close in the third quarter.
Mark Wahlberg has a minority stake in the company.
Co-founder Adam Gilchrist said in the statement that the company planned to keep helping people reach their fitness goals through its workout and nutrition plans.
"As a public company, I am confident that we will be able to accelerate our mission, while creating value for our shareholders," Gilchrist said.
Rob Deutsch confirmed earlier this week he had stepped down as chief executive of F45 but would remain a shareholder.
The company's investors include US actor Mark Wahlberg, who bought a minority stake last year. A representative for Wahlberg couldn't immediately be reached.
Wahlberg invested through a private investment vehicle called MWIG LLC that will keep its board representation.
Crescent Acquisition's executive chairman Robert Beyer and CEO Todd Purdy said in a combined statement that they believe in the company's growth trajectory. "F45's high profit margins, franchisee economics and repeatable business model position it for continued rapid expansion," they said.
Crescent Acquisition's shares were trading 4.3 per cent lower at $US10.89 in New York on Wednesday.
The deal comes after F45 paused initial public offering plans for this year after the coronavirus pandemic forced it to shut locations.
F45 is going public while some traditional gyms, which couldn't weather the lockdown closures and lost revenue, are in distress. Gold's Gym International filed for bankruptcy in May, followed by 24 Hour Fitness Worldwide earlier this month.
Founder Rob Deutsch stepped down as chief executive of F45. Credit:Peter Braig
Celebrity following
F45, whose name is a mash-up of "functional training" and the 45-minute duration of its classes, had confidentially filed paperwork to go public, Bloomberg News reported in January.
Crescent raised $US250 million in an IPO in March 2019, which it will invest in the deal, along with another $US50 million. Its backer Crescent Capital is a private lender and asset manager with more than $US28 billion under management.
Before the pandemic, Wahlberg regularly posted from F45 on social media and has introduced it to celebrities including fellow US actor Mario Lopez, as well as basketball stars Dwyane Wade and Jimmy Butler, former National Football League player Calvin Johnson and the National Hockey League's Max Domi.
Classes are offered in at least 40 countries, including in the US at colleges such as Stanford University and the University of Southern California. The sessions also feature wireless heart rate monitors, which the company calls LionHeart, that are linked to in-studio television displays.
Credit Suisse Group and Bank of America advised Crescent Acquisition, while Goldman Sachs Group and JPMorgan Chase & Co. advised F45.
More to come
Bloomberg