By Abigail Summerville
(Reuters) – OneLife Fitness, a U.S. operator of health and fitness clubs that is partly owned by private equity investor Josh Harris, is exploring a sale that could value it at around $700 million, including debt, three people familiar with the matter said.
The McLean, Virginia-based company, which is majority-owned by the family office that invests Harris’ wealth and private equity firm Delos Capital, is working with investment banks Jefferies Financial Group Inc and North Point Advisors on a sale process that is in its early stages, the sources said.
OneLife has told potential buyers that it estimates it will generate around $260 million of revenue and $70 million of earnings before interest, taxes, depreciation and amortization this year, the sources added, requesting anonymity because the matter is confidential.
HRS Management, which is Harris’ family office, and Jefferies declined to comment. OneLife, Delos and North Point did not respond to requests for comment.
OneLife owns and operates more than 50 locations in Maryland, Virginia, West Virginia, Georgia, and the District of Columbia.
Brothers Kirk and John Galiani founded the company in 2011, and in 2018 sold a majority stake to HRS and Delos for an undisclosed amount. The brothers remain significant minority investors.
Harris co-founded private equity firm Apollo Global Management Inc in 1990, leaving last year to run his own buyout firm, 26North.
With a net worth pegged by Forbes at $7.6 billion, Harris is a prolific investor in sports teams. His holdings include basketball team Philadelphia 76ers, ice hockey team New Jersey Devils and UK soccer team Crystal Palace. This year he also became the new owner of the Commanders, a U.S. football league team.
Delos Capital, led by former Apollo partner Matt Constantino, has $550 million in committed capital under management, according to its website.
Private equity firms have shown an affinity to the cash flows generated by gym memberships.
In 2019, Roark Capital acquired Fitness Connection, another regional fitness club with more than 45 locations, for an undisclosed amount. That same year, TPG Growth acquired Crunch Fitness, and TSG Consumer Partners acquired Core Power Yoga. Last year, F45 Training received a buyout offer from Kennedy Lewis Investment Management that it ultimately rejected.
(Reporting by Abigail Summerville in New York; Editing by Kirsten Donovan)
