Apollo is taking a minority ownership position in The GoodLife Group, the largest fitness club operator in Canada, in a transaction that values the business at approximately C$2 billion ($1.46 billion), according to people familiar with the matter.
Founded in 1979 by David "Patch" Patchell-Evans, GoodLife is accepting outside equity capital for the first time in its history. Patch, now 72 years old, will remain in place as chairman and will continue to hold an ownership stake in the company.
In a statement describing the investment, Apollo said it is making the commitment through funds and affiliates connected to its hybrid strategies. The statement said the infusion of capital will support GoodLife as it executes its long-term strategy, pursue growth initiatives and seek to strengthen its leadership position within the fitness market.
GoodLife is headquartered in London, Ontario, and operates more than 400 clubs. The company reports about 1.5 million members across its banners, which include GoodLife Fitness, Fit4Less, GYMVMT and Éconofitness. According to the company’s website, bi-weekly membership pricing spans from C$7.99 to C$59.99.
Patch has previously discussed the origins of the business, which he conceived while undergoing rehabilitation after a serious motorcycle accident. In the statement announcing the deal, he commented on the transaction's fit with the company’s next phase, saying: "Given its deep experience with founder-led companies, we believe this investment from the Apollo Funds will enable us to build on nearly 50 years of success and accelerate our next chapter of growth."
The report notes that investment firms similar to Apollo regularly acquire gym chains. Recent North American transactions cited alongside the deal include Leonard Green & Partners' purchase of Crunch Fitness and TSG Consumer Partners' reported acquisition of EōS Fitness for $1.5 billion. In the boutique segment, Princeton Equity Group completed an acquisition of the Barry’s bootcamp concept.
Apollo manages about $908 billion of assets globally. Its hybrid strategy, as described in the firm’s materials, provides capital solutions to companies through a mix of debt and equity products.
Advisors on the transaction include Guggenheim Securities and law firm McMillan for GoodLife, while Jefferies, the law firm Paul, Weiss, Rifkind, Wharton & Garrison and Canadian law firm Blake, Cassels & Graydon advised Apollo.
Currency used in the reporting notes that $1 equals 1.3675 Canadian dollars.
Contextual note - The deal represents a notable instance of a long-established, founder-led consumer business accepting outside private capital while the founder retains a leadership and ownership role.