Planet Health to buy franchisee Sunshine Exercise in $800 million deal

A person is effective out at Planet Health and fitness as they re-open at 25 p.c ability in Boston’s Dorchester on Feb. 1, 2021.

Jessica Rinaldi | Boston World | Getty Visuals

Planet Exercise stated Tuesday it ideas to purchase Sunshine Fitness, an operator of far more than 100 Planet Fitness health golf equipment in the U.S., in a dollars-and-stock offer valued at $800 million. 

The transaction is predicted to shut in the very first quarter of 2022, the company explained in a press launch. World Fitness said the offer is projected to increase to its modified earnings at a small double-digit per cent this yr.

The acquire of Sunshine Conditioning will permit Earth Exercise to diversify across additional geographies, explained Main Govt Chris Rondeau. Sunshine Health and fitness operates largely in the Southeast, with spots in South Carolina, North Carolina and Florida.

“Proudly owning corporate stores is an crucial section of our method, as it gives us each relevancy and trustworthiness when building conclusions that affect the complete process,” claimed Rondeau.

The moment the transaction is accomplished, Earth Fitness will have additional than 200 corporate spots, or about 10% of its full portfolio, he extra.

World Exercise claimed it finished 2021 with 15.2 million associates, an boost of 1.7 million over the previous 12 months. It opened 132 areas throughout the year, exceeding its possess expectations and bringing its full health club rely globally to 2,254.

Planet Fitness shares rose about 17% in 2021.