Fitness chain Planet Fitness Holdings LLC, known for its "judgement free zone" and low prices, is preparing for an initial public offering that could value it at more than $2 billion, including debt, according to people familiar with the matter. Planet Fitness, which is majority owned by buyout firm TSG Consumer Partners, has interviewed investment banks to hire underwriters for an IPO that will likely come in the second half of 2015, the people said this week.
The sources asked not to be identified because the matter is confidential. Planet Fitness and TSG did not respond to requests for comment. Dover, New Hampshire-based Planet Fitness has more than 900 locations throughout the United States, the majority of which are franchised. Founded in 1992, it now has over 6 million members who pay just $10 per month for its cheapest package.
With its basic amenities and no-frills approach, the chain caters to first-time or occasional gym members rather than fitness fanatics. It features on the popular TV show "The Biggest Loser." TSG made an undisclosed investment in Planet Fitness in 2013. Other publicly traded fitness club chains include Town Sports International Holdings Inc and Life Time Fitness Inc.
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