Planet Health to purchase franchisee Sunshine Health in $800 million deal

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

An individual works out at Planet Health as they re-open at 25 % capability in Boston’s Dorchester on Feb. 1, 2021.

Jessica Rinaldi | Boston Globe | Getty Pictures

Planet Health mentioned Tuesday it plans to amass Sunshine Health, an operator of greater than 100 Planet Health health golf equipment within the U.S., in a cash-and-stock deal valued at $800 million. 

The transaction is anticipated to shut within the first quarter of 2022, the corporate mentioned in a press launch. Planet Health mentioned the deal is projected so as to add to its adjusted earnings at a low-double-digit % this 12 months.

The acquisition of Sunshine Health will enable Planet Health to diversify throughout extra geographies, mentioned Chief Govt Chris Rondeau. Sunshine Health operates primarily within the Southeast, with areas in South Carolina, North Carolina and Florida.

“Proudly owning company shops is a crucial a part of our technique, because it offers us each relevancy and credibility when making selections that affect your complete system,” mentioned Rondeau.

As soon as the transaction is accomplished, Planet Health will personal greater than 200 company areas, or about 10% of its complete portfolio, he added.

Planet Health mentioned it ended 2021 with 15.2 million members, a rise of 1.7 million over the previous 12 months. It opened 132 areas through the 12 months, exceeding its personal expectations and bringing its complete gymnasium rely globally to 2,254.

Planet Health is scheduled to current to traders later Tuesday on the ICR convention, which is being held nearly this 12 months.

Planet Health shares rose about 17% in 2021.

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