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Planet Fitness to buy franchisee Sunshine Fitness in $800 million deal

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A person works out at Planet Fitness as they re-open at 25 percent capacity in Boston’s Dorchester on Feb. 1, 2021.
Jessica Rinaldi | Boston Globe | Getty Images

Planet Fitness said Tuesday it plans to acquire Sunshine Fitness, an operator of more than 100 Planet Fitness fitness clubs in the U.S., in a cash-and-stock deal valued at $800 million.

The transaction is expected to close in the first quarter of 2022, the company said in a press release. Planet Fitness said the deal is projected to add to its adjusted earnings at a low-double-digit percent this year.

The purchase of Sunshine Fitness will allow Planet Fitness to diversify across more geographies, said Chief Executive Chris Rondeau. Sunshine Fitness operates primarily in the Southeast, with locations in South Carolina, North Carolina and Florida.

“Owning corporate stores is an important part of our strategy, as it gives us both relevancy and credibility when making decisions that impact the entire system,” said Rondeau.

Once the transaction is completed, Planet Fitness will own more than 200 corporate locations, or about 10% of its total portfolio, he added.

Planet Fitness said it ended 2021 with 15.2 million members, an increase of 1.7 million over the past 12 months. It opened 132 locations during the year, exceeding its own expectations and bringing its total gym count globally to 2,254.

Planet Fitness is scheduled to present to investors later Tuesday at the ICR conference, which is being held virtually this year.

Planet Fitness shares rose about 17% in 2021.

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