LOS ANGELES, CA – Crunch Fitness (“Crunch”) has been sold to an investor group led by New Evolution Fitness Company (“NEFC”) and Angelo, Gordon & Co (“Angelo Gordon”). The transaction was approved by the Bankruptcy Court for the Southern District of New York. FocalPoint Securities, LLC (“FocalPoint”) served as financial advisor to Crunch.
Headquartered in New York City, Crunch serves its members with gyms in New York, Miami, San Francisco, and Los Angeles. After experiencing cash flow constraints, Crunch filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York on May 6, 2009.
Mark Mastrov, founder of NEFC and 24 Hour Fitness, will serve as Chairman of Crunch. “I am thrilled to have the opportunity to work with the Crunch team and Angelo Gordon to further develop and promote the innovative Crunch brand. Through our partnership, we will continue to build an industry-leading fitness organization, particularly through Crunch’s distinctive individual and group training programs,” said Mastrov.
Brent Leffel, Managing Director of Angelo Gordon noted, “FocalPoint ran an efficient process helping Crunch minimize its time in Chapter 11– something very important for a consumer facing business.”
Duane Stullich, Managing Director at FocalPoint, added: “I believe that Angelo Gordon and NEFC are poised to put the lustre back on the Crunch brand. In addition to proven operational excellence, with a debt-free balance sheet they are well positioned to grow both through green fields and acquisitions.”
About New Evolution Fitness Company
Based in Lafayette, California, the NEFC (New Evolution Fitness Company) team has a two-decade plus record of success delivering superior returns on investment in the acquisition, development, management and operation within the fitness industry both domestically and internationally. Founded in 2008 by Mark Mastrov and Jim Rowley, the current team of NEFC professionals represent over a century of experience working in a broad sector of health, wellness and fitness investments and operations.
About Angelo, Gordon & Co.
Angelo, Gordon & Co. was founded in 1988 and has approximately $17 billion under management. Currently, the firm’s investment disciplines encompass four main areas: (i) distressed debt and leveraged loans, (ii) real estate, (iii) private equity and special situations, and (iv) a number of credit oriented hedge fund strategies.
About Crunch
Crunch is a collection of state-of-the-art health clubs that believes in making serious exercise fun by pioneering a philosophy of entertainment and fitness. Renowned for creating unique programming that caters to an exceedingly diverse membership, Crunch has raised the bar for the entire fitness industry. The company has over 70,000 members in 19 clubs.
About FocalPoint
FocalPoint is an independent investment bank specializing in mergers and acquisitions, private placements (both debt and equity), financial restructurings and distressed transactions. The firm serves middle market clients throughout the U.S.
Please contact Duane Stullich or Brian Rizkallah at 310-405-7000 with any questions about this transaction.