Atlantic Street backs Planet Fitness franchise operator to help the target expand in the Midwest
Atlantic Street Capital has made an undisclosed investment in Planet Fitness (NYSE: PLNT) franchise operator Planet Fit Indy 10 LLC. The target's CEO, Mike Campagnolo, will have a stake in the company and remain in his role.
Planet Fit operates Planet Fitness franchises in Indianapolis. The company, based in Indianpolis, will use the investment to expand geographically, particularly throughout the Midwest. “Atlantic Street is the perfect partner for us as they share the same vision for our company," Campagnolo said.
Stamford, Connecticut -based Atlantic Street Capital is a private equity firm that invests in middle market companies with between $4 million and $12 million in Ebitda. The PE firm focuses on the consumer, transportation and logistics, business services, healthcare and manufacturing sectors. Some of Atlantic Street’s current investments include: women’s clothing company Alex Apparel Group; frozen spinach dip producer Double D Foods; and Fast Sandwich LLC, an operator of Jimmy John’s franchises. The Planet Fit deal is Atlantic Street's first since it raised a $210 million fund in 2016.
Gym operators have been consilodating. In 2015, Pure Gym Ltd. purchased LA Fitness Corp.; In that same year, Leonard Green & Partners and TPG Capital bought Life Time Fitness Inc; In 2014, Silver Oak Services Partners invested in Vasa Fitness LLC.