Snap Fitness Parent Lift Brands Prepares to Sell

Lift Brands is on the market.

What’s happening: Private equity firm TZP Group is in talks to sell the franchise fitness operator, owner of Snap Fitness and Fitness on Demand, as well as minority stakes in 9Round and Fitstop.

Partners for 10 years, COVID delayed TZP’s earlier exit, but completion is now expected by Q3 2024.

Lift off. Global CEO Ty Menzies said TZP has been helping Lift Brands reposition, hinting at “key M&A opportunities” that would “significantly accelerate” the business.

Bulking up, Snap’s membership increased 17% on pre-pandemic numbers and it sold 77 licences last year – the most since 2012. The gym chain aims to add 350 sites to its 1K network by 2028.

Setting sale. Lift Brands joins a growing list of operators with PE owners looking to sell.

• Bridges Fund Management recently sold its majority stake in Iberian fitness club VivaGym, operator of 100+ sites and low-cost chain Fitness Hut.
• After a failed attempt in 2017, TDR Capital is prepping a thriving David Lloyd for sale, reportedly seeking a £2B deal.
• Pilates brand Solidcore and HIIT boutique Barry’s are testing the waters as both prepare to ramp up expansion.

Takeaway: Lift Brands may be selling at the right time, as low-cost franchise models attract investors in a slowing economy. But with troubling headlines outing chains like F45 Training and Xponential Fitness, any buyer will be taking time for due diligence.