Mayfair Capital Partners Acquires Baseline Fitness
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Insights
The acquisition of Baseline Fitness by Mayfair Capital Partners represents a strategic move within the fitness industry, which is characterized by high competition and a focus on scalable business models. The undisclosed terms of the deal suggest a private transaction, typical for private equity investments. The growth trajectory of Baseline Fitness, aiming to increase its locations by 50% in the near future, indicates a bullish outlook on the market and the potential for increased revenue streams.
From a financial perspective, the expansion of Baseline's footprint could lead to economies of scale, potentially lowering per-unit costs and increasing margins. However, the fitness industry is highly sensitive to economic cycles and consumer spending on discretionary items like gym memberships can fluctuate. Investors should monitor consumer trends and economic indicators to gauge the potential success of this expansion.
Planet Fitness's positioning as a high-value, low-cost provider in the fitness sector is a key differentiator that may have influenced Mayfair's investment decision. The Judgement Free Zone® concept caters to a broad demographic, potentially driving membership growth and retention. The fitness industry is experiencing a shift towards convenience and affordability, trends which Planet Fitness and, by extension, Baseline Fitness, are well-positioned to capitalize on.
Moreover, the partnership with an established franchisor like Planet Fitness provides Baseline with a recognizable brand and operational support, which can be critical in new market penetration and customer acquisition. The strategic support from Mayfair could enable Baseline to navigate competitive pressures and regulatory challenges that are inherent in the fitness industry.
The investment by Mayfair in Baseline Fitness also reflects broader economic trends, such as the increasing importance of health and wellness in consumer spending. The fitness industry has seen growth in recent years, spurred by rising health consciousness among consumers and technological innovations such as fitness apps and wearable devices.
However, the industry is not without its risks. The potential for economic downturns could impact discretionary spending on fitness. Additionally, the increasing saturation of the market and the rise of alternative fitness options, such as at-home workouts, may pose challenges to traditional gym models. The long-term success of this investment will depend on Baseline's ability to adapt to these changing market dynamics and maintain a competitive edge.
Founded in 2009 and headquartered in
Oxford’s Mayfair division has a 20+ year history of investing in high-growth, market-leading companies with the goal of providing growth capital and strategic support in order to enable businesses to broaden their reach and better serve their customers. The Baseline Fitness management team, led by CEO Scott Majkrzak, and the knowledgeable, skilled employee base has a compelling, shared vision for continued growth.
Ben Ault, Mayfair Managing Director, shared, “We are grateful for the opportunity to partner with the Baseline team and the company’s 1,000+ employees as they seek to grow the business from 100 locations today to more than 150 in the next few years. Planet Fitness is a strong brand that offers its customers a great value in our markets and we appreciate the support we have received from Planet Fitness HQ and the Piper Sandler investment banking team as we worked to join this great franchisee system.”
Scott Majkrzak, CEO of Baseline Fitness said: “We are thrilled to partner with Mayfair. Our partnership will allow us to continue our growth trajectory by expanding our footprint in our existing territories and in new markets.”
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Jeff Thomasson, Oxford’s CEO, reflected, “We are pleased to offer our qualified clients and partners the opportunity to participate in hard-to-access investment opportunities like this one, through Mayfair. We believe this is an important component of what sets us apart from other firms, and we are pleased to be able to provide these opportunities.”
ABOUT MAYFAIR CAPITAL PARTNERS
Mayfair Capital Partners is an extension of the Mayfair direct investment program, which has been an in-house division of Oxford since 2003, historically managing a portfolio of direct investments exclusively for the benefit of Oxford’s high net worth families and institutional clients. Mayfair Capital Partners typically makes equity investments between
*Information obtained from the Planet Fitness website.
The information in this presentation is for educational and illustrative purposes only and does not constitute investment, tax or legal advice. This report shall not constitute an offer to sell, or a solicitation of an offer to purchase any security. The opinions expressed are those of Oxford Financial Group, Ltd. The opinions are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Oxford Financial Group, Ltd. is a Registered Investment Advisor (RIA) registered with the Securities and Exchange Commission and is headquartered in
View source version on businesswire.com: https://www.businesswire.com/news/home/20240222160379/en/
Ty Schlobohm, Mayfair Capital Partners™
Phone: 612.379.4501
Email: tschlobohm@ofgltd.com
Source: Mayfair Capital Partners
FAQ
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