By Gillian Tan
(Bloomberg) — Barry’s Bootcamp, best known for its high-intensity workouts, is making new efforts to sell itself.
The company, which made its name by combining treadmill interval training with strength training, is working with an adviser to explore strategic options including a sale, people familiar with the matter said. It’s a repeat of a pre-pandemic attempt that might have valued the company at $700 million if sold, Bloomberg News reported in 2019. Valuation expectations for the company are higher now, one of the people said.
Led by co-presidents Joey Gonzalez and Jonathan “JJ” Gantt, Barry’s has more than 50 studios in the U.S. that are either open or in development, according to its website. In addition, the company operates studios around the world, including in Australia, Singapore, the United Kingdom and Norway.
A spokeswoman for Barry confirmed the company is exploring strategic options and declined further comment. The studio’s revenue increased 27% last year from 2022, she said, without providing details.
Since the pandemic, Barry’s has added a class that combines weight lifting and indoor cycling, allowing the company to compete against competitors like SoulCycle and CycleBar, and opened 26 new studios around the world.
“We are truly pleased with the value we have created since the beginning of 2020 with a fully recovered global business, successful continued expansion into new market types and the proof of concept of our ride and lift modalities,” Gonzales said in a statement provided to Bloomberg.
All of the company’s U.S. studios are profitable, the Barry’s spokeswoman said. Worldwide, the company’s class enrollment exceeded 7.4 million last year, she said.
The company’s investors include North Castle Partners and LightBay Capital, the latter firm backed Barry’s in 2020 after the company was forced to close due to Covid-19.
Alternative asset managers have long been drawn to bets on health and wellness. Last month, Sixth Street led an investment group that provided $1.8 billion in funding to Equinox Holdings Ltd. Silver Lake, Ares Management Corp., HPS Investment Partners and L Catterton also participated. Separately, Orangetheory Fitness and Self Esteem Brands, both backed by Roark Capital, merged earlier this month.
(Updated with additional transaction in final paragraph. An earlier version of this story corrected the spelling of Gonzalez in the third paragraph.)
©2024 Bloomberg L.P.
