Just over a month after announcing their intent to combine, Orangetheory Fitness and Self Esteem Brands, owner of Anytime Fitness, completed what the companies described as a “merger of equals.”
In a joint announcement April 2, the companies said the deal officially closed and creates “the world’s largest portfolio of powerhouse brands.” The new—and as yet unnamed entity—has about $3.5 billion in systemwide sales and approximately 7,000 franchise locations across 50 countries.
Executives from Self Esteem Brands and Orangetheory were not available to comment on the merger, and a spokesperson noted, “We aren’t doing any interviews about the closing or new company at this time.” Terms of the merger were not disclosed, but the companies previously said its completion would come via an all-stock transaction.
Chuck Runyon and Dave Mortenson founded Anytime Fitness in 2002 and have since grown it to 5,000-plus total units and more than $2 billion in system sales. In 2012 they acquired waxing franchise Waxing the City and later formed Self Esteem Brands. Additional acquisitions followed, with SEB buying high-intensity group workout concept Basecamp Fitness in 2018 and The Bar Method in 2019. It added nutrition-based coaching brand Stronger U in 2021, and last year announced the launch of Sumhiit Fitness, a twin brand to Basecamp that is franchising internationally.
Anytime Fitness is by far SEB’s largest brand. Waxing the City has 150 units, followed by The Bar Method with 77 and Basecamp with 21.
Orangetheory CEO Dave Long, who co-founded the high-intensity interval training concept in 2010, helped it grow to more than 1,500 locations in the United States and 24 countries. Orangetheory hit $1.25 billion in global sales in 2022.
In the announcement of the deal the companies did not comment on any potential name change, headquarters location—Self Esteem Brands is based in Woodbury, Minnesota, while Orangetheory is in Boca Raton, Florida—or possible impacts on existing franchisees.
Atlanta-based private equity firm giant Roark Capital is an investor in both companies. It invested in Self Esteem Brands in 2014, and in 2016 made a growth equity investment in Orangetheory. Roark, “will continue to support the newly merged entity alongside the founders and leadership teams,” the companies said.
Chuck Runyon and Dave Mortensen created Self Esteem Brands in 2012 and are also the co-founders of Anytime Fitness, the largest brand under the umbrella.