In a significant move within the fitness industry, L Catterton, the private equity firm associated with the luxury goods conglomerate LVMH, has agreed to acquire a majority stake in Solidcore, the popular Pilates studio operator. This acquisition underscores investors’ continued interest in wellness and fitness as lucrative sectors, particularly post-pandemic.
The acquisition deal, announced recently, values Solidcore at an estimated $650 million. Solidcore is best known for its high-intensity 50-minute workout classes conducted on specialized reformer machines dubbed “sweatlana.” The decision for L Catterton to acquire Solidcore comes after the company explored its options for sale with investment banks North Point and Piper Sandler earlier this year.
Marc Magliacano, a managing partner at L Catterton’s Flagship Fund, highlighted the growing awareness among consumers about the benefits of physical health. “Consumers understand that movement is medicine, with daily strength training as a key part of their regimen for living a longer, healthier life,” he stated. This sentiment aligns with the trends observed in the industry where fitness and wellness are increasingly viewed as essentials rather than luxuries.
With over $35 billion in assets under management, L Catterton brings a wealth of experience to this acquisition. The firm has previously invested in various fitness-related ventures, including upscale gym chain Equinox, at-home fitness technology company Tonal, and fitness software platforms like ClassPass and iFIT. Their involvement with leading fitness entities lends credibility to their perspective on Solidcore’s future potential.
Founded in 2013 by Anne Mahlum, Solidcore has grown rapidly, boasting approximately 130 locations across 25 states and the District of Columbia. Last year, the company announced plans for international expansion, aiming to reach 250 studios by 2028. The firm’s growth strategy seems well-timed, as gym chains and such fitness studios have reported a resurgence as consumers return to in-person workouts following the disruptions caused by COVID-19.
Private equity interest in the fitness and wellness sector often stems from its predictable cash flow characteristics. Businesses in this domain generally attract consistent customer bases, providing a reliable revenue stream. This has been especially true as fitness and wellness have risen in consumer consciousness alongside a growing trend towards health-oriented lifestyles.
While the resurgence of in-person workout sessions is promising for Solidcore, the brand must distinguish itself within a crowded market. Competitors range from traditional gym chains to increasingly popular boutique studios that focus on specialized workouts. L Catterton’s investment will likely provide the resources necessary to enhance Solidcore’s operational efficiencies, marketing initiatives, and ultimately, its competitive standing in the market.
The acquisition also reflects broader trends within the fitness landscape, where investors seek opportunities within niche markets that cater to evolving health-conscious consumer behaviors. As consumers increasingly prioritize their well-being, investors are keen to capitalize on trends that align with lasting lifestyle changes. Solidcore, with its unique offerings and apparent growth trajectory, fits this narrative.
As L Catterton steps into a leadership role at Solidcore, the company may also explore strategic collaborations and partnerships to further extend its reach. The emphasis on community-driven health and wellness experiences could open doors to innovative service offerings, potential franchise opportunities, and the introduction of new fitness programs targeting diverse demographics.
In summary, the acquisition of Solidcore not only highlights L Catterton’s strategic interests in the fitness industry but also reflects wider shifts in consumer priorities towards health and wellness. Solidcore’s distinctive boutique offering, combined with the resources and expertise of L Catterton, positions it well for future growth, both domestically and internationally.
As the fitness culture continues to evolve, Solidcore’s journey under L Catterton’s stewardship will be one to watch, undoubtedly influencing trends and consumer behaviors in the wellness sphere.
