Leonard Green & Partners Acquires Majority Stake in Crunch Fitness from TPG Growth
Krissy Vann | Host, All Things Fitness and Wellness
Crunch Holdings LLC, the parent company of Crunch Fitness, has announced a strategic investment from Leonard Green & Partners, a private equity firm focused on consumer-facing businesses. Under the terms of the agreement, LGP will acquire a majority interest in Crunch Fitness from TPG Growth, the middle market and growth equity platform of TPG, as well as from other minority shareholders.
Founded in 1989 in New York City’s Greenwich Village, Crunch has expanded from a single gym into an international fitness brand. As of 2024, the company operates more than 500 locations and serves over three million members worldwide. Its business model focuses on accessible pricing, group fitness programming, and an inclusive brand culture.
Since TPG’s initial investment in 2019, Crunch has experienced significant growth. During that period, the company increased its membership by more than 2.1 million people, representing 176 percent growth. It also added 275 gyms, more than doubling its total number of locations.
“This is an exciting new chapter for Crunch,” said Jim Rowley, Chief Executive Officer of Crunch Fitness. “Leonard Green & Partners has a phenomenal track record of success and investing in consumer brands, and we’re confident their strategic insight and operational expertise will only continue to accelerate our growth while staying true to our core values.”
TPG's tenure included support through the pandemic and the brand’s continued development. “Jim and his team have built a superb company, serving both their members and their franchisees well,” said Jonathan Coslet, Partner at TPG. “The Crunch team’s creativity, tenacity, and customer-centric culture have been hallmarks of their very successful build to date and will continue to drive Crunch’s leadership alongside their new partners at LGP.”
LGP has experience investing in health, wellness, and retail companies. Its acquisition of a majority stake in Crunch reflects ongoing private equity interest in scalable franchise-based fitness operations.
“What Crunch has accomplished in the past five years is truly unprecedented,” said John Danhakl, Managing Partner at Leonard Green & Partners. “We are excited to support the brand’s continued evolution alongside a strong leadership team and franchise network. Crunch’s powerful business fundamentals and distinctive member experience make it an ideal fit for our portfolio.”
Jefferies LLC served as the lead financial advisor to Crunch. North Point M&A also advised, and legal counsel was provided by Kirkland & Ellis. “I’d also like to thank our advisors for their invaluable insight and support throughout this process,” Rowley added.
The investment marks a change in majority ownership, but no changes to day-to-day operations or leadership have been announced. Crunch is expected to continue executing its current growth strategies under the existing executive team.
