In a striking upheaval within the fitness industry, Crunch Fitness is poised for a transformative transaction that could reshape the market. Buyout firm TPG is reportedly exploring the sale of Crunch Fitness at a valuation exceeding US $1.5 billion, including debt. This potential deal, being managed by investment bank Jefferies, is slated to commence in the first half of 2025.
A Major Move in Fitness M&A
This proposed sale marks one of the most significant fitness franchise transactions in recent memory. The projected price tag is grounded in a striking valuation multiple—Crunch Fitness is expected to fetch more than 15 times its annual EBITDA, which stands at approximately US $100 million. Achieving such a premium multiple underscores the growing investor appetite for fitness platforms capable of delivering consistent performance and strong membership growth.
Crunch Fitness currently serves around 2.5 million members globally, an expansive network that enhances its appeal to private equity suitors. This scale, combined with membership engagement and the post-pandemic resurgence in in-person fitness demand, make it a compelling asset.
Industry Context: Rising M&A Momentum
Crunch’s potential sale is emblematic of a broader consolidation trend in the fitness sector. Industry analysts note that 2024 and into 2025 have seen robust M&A activity. Over seventy fitness-related transactions closed in 2024 alone, with investor interest intensifying in both boutique and legacy segments. Key areas like strength training, wellness, recovery, and connected fitness continue attracting capital.
The success of earlier deals—such as high-profile transactions involving Barry’s Bootcamp and Solidcore—has set a precedent for franchise and boutique brands to seek liquidity events. CrossFit is speculated to be next in line for acquisition activity later in 2025.
Strategic Significance for Sellers and Buyers
For sellers, a transaction of this magnitude presents a major liquidity event—potentially catalyzing further deals or enabling investment in new verticals like wellness tech or digital platforms. It also signals to competitors the increasing valuations and exit opportunities possible in the fitness space.
For private equity firms, Crunch offers a scalable, brand-driven platform with diversified revenue sources—membership fees, ancillary services, and potential franchising or licensing expansions. Being positioned at a premium 15x EBITDA multiple suggests TPG or other suitors see both current profitability and long-term growth.
Moreover, Crunch’s global footprint and diverse offerings align with investor strategies seeking consolidation across regional health club chains and boutique concepts. The increasingly interconnected global fitness market opens avenues for cross-border expansion post-deal.
What This Means for the Fitness Landscape
Crunch Fitness's potential sale at a record-breaking price carries implications across multiple fronts:
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Valuation benchmarks – A successful transaction above $1.5 billion would likely reset price expectations for comparable fitness brands.
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Investor confidence – Finance professionals and operators will watch closely to see if this deal materializes, potentially spurring a second wave of deals.
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Operational scale – Smaller chains and boutique gyms may explore consolidation or partnerships as investors lean toward larger entities.
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Digital-physical hybrid models – With Crunch rooted in traditional gym formats yet navigating modern fitness preferences, its future owner could further integrate digital offerings.
Conclusion
The impending sale of Crunch Fitness at an estimated valuation above US $1.5 billion represents a landmark event in fitness industry M&A. With nearly 2.5 million members and EBITDA nearing US $100 million, the brand commands both scale and profitability—qualities that attract serious interest from private equity and strategic buyers.
As the deal process unfolds in 2025 under Jefferies’ guidance, industry stakeholders will watch how this might shift valuation norms, catalyze further consolidation, and influence capital flows into the evolving fitness ecosystem.