HOUSTON--(BUSINESS WIRE)--Afterburn Holdings (“Afterburn”), a leading Orangetheory® Fitness franchisee, has expanded into the Pacific Northwest with the recent acquisition of eighteen owned studios, thirteen sub-franchised studios, and area development rights to the state of Washington. Afterburn now operates and oversees 89 studios across several high growth markets and has grown its studio footprint by over four times since partnering with Brentwood Associates (“Brentwood”) in December 2018.
Concurrent with the transaction, Brentwood partnered with Garnett Station Partners (“Garnett Station”) to help Afterburn finance the acquisition. Brentwood and Garnett Station will continue to support Afterburn in its future growth.
Jim Potesta, President and CEO of Afterburn, stated, “We are excited to expand the Afterburn footprint into the growing Washington fitness market and to leverage our operational expertise to deliver a best-in-class Orangetheory Fitness experience to our members. We look forward to partnering with a highly experienced local team to return Washington to its strong, pre-pandemic performance, continuing our successful partnership with Brentwood, and cultivating a new partnership with Garnett Station.”
Chris Reekie, Principal at Brentwood, commented, “Jim and team have continued to demonstrate strong operational excellence, especially while navigating the challenging fitness environment of the last two years. The Washington market aligns well with Afterburn’s strengths in managing high-volume studios, and we look forward to seeing them deliver an exceptional member experience in their existing and new markets. Combined with our new partnership with Garnett Station, this strategic acquisition further solidifies Afterburn’s position as a top franchisee in the Orangetheory Fitness system.”
Alex Sloane, Co-Founder and Managing Partner at Garnett Station, added, “We are pleased to work alongside Brentwood to help Jim and the Afterburn team achieve this goal, and to be a partner to further accelerate Afterburn’s significant growth potential.”
Orangetheory® utilizes technology and a science-backed combination of endurance, strength and power to deliver superior fitness results. The Orangetheory® brand has garnered attention for the strong sense of community it generates within its member base. Classes are group-based and incorporate real-time results displayed on large screens in the studio, allowing participants to track progress on their goals in real time. The combination of exercise, technology and community renders the Orangetheory® workout a powerful tool, effective for all fitness levels.
Piper Sandler & Co. served as exclusive financial advisor to the seller of the Washington state area representative. Burr & Forman LLP served as legal counsel to Afterburn. Lane Powell PC served as legal counsel to the seller.
ABOUT AFTERBURN HOLDINGS
Afterburn Holdings is a leading franchisee and area representative of Orangetheory Fitness, founded in 2013 and headquartered in Houston, Texas. The Company operates and oversees 89 Orangetheory Fitness studios across territories in Texas, Florida and Washington.
ABOUT ORANGETHEORY® FITNESS
Orangetheory is a heart-rate based total-body group workout that combines science, coaching and technology to produce maximum results from the inside out. Workouts are typically 1-hour long and are led by trained coaches, incorporating endurance, strength, and power to guide members through 5 different heart rate zones. The workout aims to increase excess post-exercise oxygen consumption (EPOC or the ‘Orange Effect’) whereby participants can continue to burn a higher rate of calories for 24 to 36 hours after their workout. There are currently over 1,300 fitness studios worldwide in the Orangetheory system.
ABOUT BRENTWOOD ASSOCIATES
Brentwood Associates is a Los-Angeles based private equity investment firm with a 30+ year history of investing in middle-market growth-oriented consumer & technology-enabled business services companies. Core sectors of investment include branded consumer products and services, health and wellness, beauty, personal care, food & beverage, multi-unit restaurant and specialty retail, e-commerce, and education. Since 1984, Brentwood’s dedicated private equity team has invested in over 50 portfolio companies with an aggregate transaction value of over $6 billion. With significant experience in both investing and brand building, Brentwood is a value-added partner for entrepreneurs and senior management teams building world-class companies. For more information about Brentwood, please visit www.brentwood.com.
ABOUT GARNETT STATION PARTNERS
Garnett Station Partners is a principal investment firm founded in 2013 by Matt Perelman and Alex Sloane. Garnett Station partners with experienced and entrepreneurial management teams and strategic investors to build value for its portfolio of growth platforms. The firm draws on its global relationships, operational experience and rigorous diligence process to source, underwrite and manage investments. Core sectors include food & beverage, health & wellness, automotive and business services. Garnett Station’s culture is based on the principles of entrepreneurship, collaboration, analytical rigor and accountability. For more information, please visit www.garnettstation.com.
