NB Group Recapitalization of CR Fitness Holdings
NEW YORK and TAMPA, Fla., May 17, 2018 (GLOBE NEWSWIRE) -- NB Group Investors (“NB Group” or “NBG”) and PNC Mezzanine Capital (“PNC MC”) announced today an investment of equity and debt to support growth initiatives of CR Fitness Holdings (“CR Fitness” or the “Company”). With over a dozen locations, CR Fitness is one of the largest and fastest-growing franchisees of Crunch Fitness, a premier “high value, low price” gym chain.
CR Fitness is rapidly expanding its club footprint in Florida and Georgia and is led by a veteran management team with over one hundred years of combined experience in the fitness industry. The existing CR Fitness management team will remain with the company and lead its growth. With a comprehensive fitness offering and affordable price point, Crunch Fitness offers unmatched value to its members regardless of fitness level, and is well positioned to take advantage of consumers’ increasing focus on health and wellness.
“We’re excited to partner with NB Group as we embark on a period of rapid growth and transformation for the company,” said Vince Julien, CEO of CR Fitness. “We enjoyed working with NB Group throughout the process and are excited to draw on their and PNC MC’s experience and resources to assist us moving forward.”
NB Group’s investment came after a period of extensive research into the industry. “After closely examining the Fitness industry, we determined that the high value, low price gym segment will continue to take market share and that Crunch is the best positioned brand,” said Ariez Dustoor, Partner at NBG. “We then sought out the best management teams in the space and were very impressed with CR Fitness’ leadership.”
“We are excited to partner with Vince and the rest of the team to support the company’s growth plan and continued operating excellence,” added NBG Partner Neel Bhargava. “The team’s expertise in real estate selection and gym operations provides a strong foundation for scaling the business through opening new locations and optimizing existing operations.”
About NB GroupNB Group Investors (“NBG”) is a lower middle market private equity firm founded in 2017. NBG focuses on investments in North American companies with $10-100M of revenue and significant growth potential in three core sectors: Consumer/Retail, Technology/Telecom, and Business Services. NBG is a hands-on investor and works closely with portfolio companies, supported by experienced Operating Partners in its target sectors. Partners Neel Bhargava and Ariez Dustoor leverage deep experience as investors, advisors, and operators to help management teams accelerate growth and improve their companies with a focus on long-term value. NBG is actively seeking new investments to add to its portfolio. More information is available at https://www.nbgroup.us
About PNC Mezzanine CapitalPNC Mezzanine Capital is focused on financing buyouts, recapitalizations and consolidation strategies for lower middle market companies in a range of industries. Primary areas served include business services, niche manufacturing and value-added distribution. Since 1989, PNC Mezzanine Capital has been a stable, thoughtful junior capital partner dedicated to creating value for sponsor groups, entrepreneurs and management teams. Our approach has been to underwrite the long-term business strategies of portfolio companies, which allows us to respond constructively to the opportunities and challenges of the changing business environment. PNC Mezzanine Capital has made 160 investments in 86 companies, in support of 302 transactions. We seek to invest $10-40M in subordinated debt and equity in companies with strong management teams, proven business models and stable cash flows with clear avenues for growth. Please find more information at https://www.pnc.com/mezzanine/
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