Plans to merge Orangetheory Fitness and Self Esteem will form US$3.5 billion business

Orangetheory and Self Esteem Brands have announced plans to merge “as equals” which will result in the creation of a new company with around US$3.5 billion a year in sales and 7,000 franchises in 50 countries.

The merger between Orangetheory Fitness - a leader in heart rate-based interval training, and Self Esteem Brands - a leading portfolio of purpose-driven health and personal care franchise brands will be an all-stock transaction, creating one of the largest fitness, health and wellness businesses globally.

The two already share a backer in the form of private equity firm Roark Capital.

The combined portfolio of brands will include Orangetheory Fitness, Anytime Fitness, Waxing the City, Basecamp Fitness/SUMHIIT Fitness, The Bar Method, and Stronger U Nutrition.

After closing, the new company will leverage resources and scale to position a combined portfolio of world-class brands – including Anytime Fitness and Orangetheory Fitness – for growth in the $5.6 trillion global wellness economy.

Chuck Runyon, co-founder, Anytime Fitness and Chief Executive, Self Esteem Brands noted "from our simple beginnings in 2002 with the first Anytime Fitness club, we've enjoyed rapid growth worldwide thanks to both the power of small-business franchising and our mix of brands that meet ever-increasing demand for more holistic and personalized health and wellness services.

"With this merger, we will enrich even more people around the world through franchising, community and the services they need – now and in the future – on their personal health and wellness journeys."

The merger will result in significant international scale for the new company, with continued investments in leading-edge data and analytics, technology, products and services that help franchisees across its brands outpace growing consumer demands for holistic health and wellness services.

Dave Long, co-founder and Chief Executive of Orangetheory Fitness, added "as we start a new chapter, Orangetheory will continue to build on our legacy of innovation and transformation. Today, with this groundbreaking agreement, we are one step closer to setting a new benchmark for what it means to be a global leader in fitness, health and wellness. We are excited about what our combined companies will be able to accomplish together to capture an increasing market share, unlock future growth and pioneer a healthier tomorrow for consumers around the world."

Roark Capital, a private equity firm that focuses on investing in franchise and multi-unit businesses has been invested in Self Esteem Brands and Orangetheory Fitness since 2014 and 2016, respectively.

Erik Morris, chief investment officer of Roark Capital advised "The founders and leadership teams at both Self Esteem Brands and Orangetheory have built terrific brands, and each have a long history of remarkable growth. We're excited to continue to partner with the teams to create a leading global franchise platform in the health and wellness sector.”

Timing of the merger is subject to regulatory approvals and customary closing conditions.

The name for the new business has not yet been revealed.

Roark is an Atlanta-based private equity firm with $37 billion in assets under management. Roark specializes in franchise and franchise-like business models in the health, wellness and fitness, restaurant, education and youth activities, and consumer and business services sectors. 

For more information on Orangetheory Fitness, including global franchise opportunities, visit www.orangetheory.com.

For more information on Self Esteem Brands please visit sebrands.com/

Images courtesy of Orangetheory Fitness/Facebook.