Harris Williams Consumer Update
Harris Williams recently advised Taymax, a leading Planet Fitness franchisee, in its sale to Trilantic North America. Taymax, which operates 52 clubs, is one of the largest and fastest-growing franchisees in the Planet Fitness system and has been recognized as Planet Fitness Developer of the year in two of the last three years and Franchisee of the year in 2018. The deal marks the 10th health, wellness, and fitness transaction closed by Harris Williams in the last 24 months, and we expect continued activity in the sector.
M&A within the fitness space continues to be robust, with businesses in the high value, low price (HVLP) and boutique segments garnering significant interest. Businesses demonstrating strong organic/comp growth, an ability to ramp new units quickly and effectively, and a clear path to increasing their footprint through addressable whitespace are receiving strong valuations and buyer appetite. In addition, long-term industry fundamentals (highlighted below) are driving further investment and appetite in the space.
Fitness Industry Fundamentals Continue To Be Strong
Highlighted in IHRSA’s 2018 Global Report, the fitness industry continues to experience growth, driven by an increasing focus on health and wellness. In 2017, health club member count exceeded 174 million consumers globally, and revenue for the industry surpassed $87 billion. In the U.S., revenue increased almost 9% from 27.6 billion in 2016 to 30.0 billion in 2017; member count increased 7% to 60.9 million members in 2017. While recent growth has been strong, the market as a whole has proven to be recession resistant and a long-term grower. Health club member count has grow 47% since 2007, while visits per year has increased ~40% - higher utilization with increasing member count provides a strong foundation for further growth. Finally, the industry’s growth is also being driven by today’s evolving retail landscape – health clubs and studios are in a sense “Amazon Proof” and landlords are looking for fitness concepts to serve as anchor tenants as a result of the foot traffic they drive.
In a recent whitepaper, Harris Williams provided perspectives on the drivers of the broader $220 billion health, wellness, and fitness space. The article shares several insights gained from recent engagements, including:
An Update On The Harris Williams Consumer Group
This summer, 40+ professionals from three countries gathered in Richmond, Virginia for the Harris Williams Consumer team offsite. Each year, the Consumer team meets together to recap the prior twelve months and to discuss ways in which we can continue to leverage our global team to better serve our clients. Over the past several years we have expanded our sector expertise, significantly increased headcount, and experienced consecutive record breaking years. Since January 2017, the Harris Williams team has closed 29 deals with an aggregate deal value of over $8.5 billion.
Photos From The Annual Meeting
Public Markets Overview
Key Trading Statistics (detail included below)1
Public Company Sector Performance (12-month % change in stock price)1
Consumer and Retail Industry Stock Performance1
Recent Equity Offerings1
Announced Consumer and Retail M&A1
Consumer and Retail M&A Trends1
Trading Multiples and Announced Private Equity M&A Activity1
Recent North American Consumer M&A1
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