Private equity firm TPG is mulling a potential sale of high-value, low-price (HVLP) fitness leader Crunch Fitness that could value the gym operator at more than $1.5 billion, according to Reuters.

The budget-friendly gym operator counts soccer star and Bioniq investor Cristiano Ronaldo, Dallas Cowboys quarterback Dak Prescott, and, most recently, LA Clippers shooting guard James Harden among its franchise owners.

TPG is reportedly working with investment firm Jefferies on the sales process, which could occur in the first half of 2025, anonymous sources close to the matter told the publication. Those familiar with the potential deal say Crunch’s acquirers may include other private equity firms.

Crunch was acquired by TPG in 2019 in a transaction that included the HVLP operator’s “Signature” facilities and its global franchising business for an undisclosed amount.

Crunch Looks to Crush 2025

In an exclusive interview with Athletech News in August, Crunch Fitness CEO Jim Rowley shared that the “No Judgments” gym operator is ready to dominate the HVLP space in 2025.

“We’re at this place in the Crunch history, where we’re 35 years old as a company, 15 years old as a franchise company, and we’re meeting great milestones, but it’s also time for us to level up and create a distinction between ourselves and the competition,” Rowley said.

It’s been an impressive year for the brand, which has opened more than one new club per week on average—a pace Rowley expects Crunch to top in the coming year.

Crunch also bolstered its executive team in recent months, appointing former Pizza Hut executive Chequan Lewis as president and former Xponential Fitness international development chief John Kersh as its managing director of international development.

The gym leader is also set to gain ground in Canada, with Crunch Canada, an Ontario-based Crunch Fitness franchisee, securing an investment from Trive Capital and 808 Capital Partners this month.

The Strength of Fitness

While private equity remains bullish on big-box gyms like Crunch and Planet Fitness, smaller-footprint operators like Anytime Fitness are increasingly seen as attractive targets, according to some experts. Boutique fitness also appears strong, as L Catterton acquired a majority stake in Pilates-inspired fitness brand Solidcore this fall — a standout in the booming Pilates sector for its decision not to adopt a franchise model. The strength-focused workout brand has just become the first retail tenant in an upcoming luxury residential building in Durham, North Carolina.

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PickleRage plans to open more than 200 new locations across the U.S. over the next two years following a deal with GreenPeak Venture Partners, a private equity group.

The indoor pickleball franchise says it plans to target cities in Ohio, Georgia, Illinois, Florida, Texas, North Carolina, and Tennessee.

“We are beyond thrilled to partner with PickleRage as we work with them on achieving their 2029 vision of opening over 500 locations,” commented Jared Feldman, managing principal at GreenPeak Venture Partners. “We couldn’t be more pleased with PickleRage’s progress thus far and are firmly committed to leveraging our resources to help them succeed.”

PickleRage features professional CushionX courts, LED lighting, online reservation and check-in systems, and video-equipped pickleball courts to record pickleball games and help improve skills.

“This is an exciting milestone for PickleRage,” PickleRage COO David Smith said. “As an avid pickleball player, I know that novices and pros alike will appreciate our state-of-the-art facilities. With GreenPeak’s support, we will be more equipped than ever to achieve our 2029 vision of opening 500+ clubs nationwide. We look forward to opening our clubs in new communities across the country as we begin this massive expansion effort.”

While PickleRage sets its long-term goals, the pickleball space is becoming highly competitive.

Luxury athletic country club operator Life Time also has hundreds of courts in the works, and indoor pickleball franchises The Picklr and Pickleball Kingdom are expanding into Canada. Considered America’s fastest-growing sport, pickleball has made its way to QVC, courtesy of a multi-year deal with USA Pickleball to sell gear and activewear. The channel will also air behind-the-scenes content and exclusive livestream coverage of the 2024 Biofreeze USA Pickleball National Championships, which airs from November 9-17 at the Arizona Athletic Grounds.

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