Harris Williams Consumer Update

taymax_0.gifHarris 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.

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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:

•Size, growth and value drivers in three constituent subsegments: health clubs, fitness and training; workplace health and wellness; and digital health
•Key data points and trends regarding the three groups driving demand for health and wellness solutions: employers, healthcare payors and providers, and consumers
•Three essential practices that set successful health and wellness businesses apart from others
•Snapshots of businesses we have worked with that are leaders in the health and wellness marketplace
 

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

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Public Markets Overview

Key Trading Statistics (detail included below)1

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Public Company Sector Performance (12-month % change in stock price)1

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Consumer and Retail Industry Stock Performance1

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Recent Equity Offerings1

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M&A Overview

Announced Consumer and Retail M&A1

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Consumer and Retail M&A Trends1

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Trading Multiples and Announced Private Equity M&A Activity1

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Public Comparables1

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M&A Transactions

Recent North American Consumer M&A1

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1. FactSet

The information and views contained in this report were prepared by Harris Williams LLC (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any securities or financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The securities and financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.​