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Club Pilates Franchise Owner Is Planning an IPO

Gillian Tan and Crystal Tse

(Bloomberg) -- Xponential Fitness LLC, the franchise owner of boutique fitness brands including Club Pilates and CycleBar, is planning a U.S. initial public offering, according to people with knowledge of the matter.

The company will seek to raise about $300 million in the offering at a valuation of about $1 billion, said one of the people, who asked not to be identified because the information was private. Xponential has tapped banks including Bank of America Corp., Goldman Sachs Group Inc. and Jefferies Financial Group Inc. as advisers, the people said.

“It is our policy to refrain from commenting on rumors or speculation,” Irvine, California-based Xponential said in an emailed statement.

Representatives for Bank of America, Goldman Sachs and Jefferies declined to comment.

With other brands including Row House, Pure Barre, StretchLab, dance-based cardio workout AKT, treadmill-based Stride and YogaSix, Xponential is capitalizing on increased consumer spending on fitness, alongside competitors such as Equinox and Peloton Interactive Inc.

SoulCycle, Silver Lake

Equinox, the luxury gym chain operator backed by L Catterton among others, is the majority owner of SoulCycle Inc. and is in advanced discussions with private equity firm Silver Lake regarding an investment, Bloomberg has reported.

Budget gym operator Planet Fitness Inc., which went public in 2015 and has more than 2,000 locations, has seen its stock gain about 40% in the past year, outpacing the S&P 500 Index’s 27% gain.

Xponential was founded in 2017 by Chief Executive Officer Anthony Geisler and is backed by him and Snapdragon Capital, according to a statement. It has franchised 1,600 studios in the U.S. and Canada -- which have a cumulative member count of 500,000, with another 900 studios in development, according to its website.

(Updates with Jefferies in second paragraph)

To contact the reporters on this story: Gillian Tan in New York at gtan129@bloomberg.net;Crystal Tse in New York at ctse44@bloomberg.net

To contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, ;Alan Goldstein at agoldstein5@bloomberg.net, Michael Hytha, Matthew Monks

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