Club Business International, the world’s leading magazine for the health and fitness industry, offers an inside look into how Florida-based private equity firm Brockway Moran & Partners made Gold’s Gym the largest private sale in the history of the club industry as of October 2004.
Under Brockway Moran, Gold’s Gym increased its stake in corporate-owned facilities to 37; added approximately 100 units to its franchised operation; enrolled an additional 500,000 members and experienced significant growth in product licensing and overseas franchising. Brockway Moran sold Gold’s Gym to TRT Holdings for $158 million.
“I don’t think anyone really realized the multiple we could get,” reflects Peter Brockway, managing partner at Brockway Moran. “With a smaller chain of 4-5 clubs, five to six times EBITDA is an acceptable number. In this case, Gold’s is an extremely strong brand and has considerable scale, so we were confident we could produce a significantly better multiple.”
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