FALCONHEAD CAPITAL ACQUIRES EXTREME FITNESS, A LEADING FITNESS CLUB OPERATOR IN GREATER TORONTO
NEW YORK, N.Y. and TORONTO, Ont., June 19, 2006—Falconhead Capital, LLC, of New York, a private equity firm specializing in investments in consumer-focused businesses, today announced that it has acquired a majority stake in Extreme Fitness Holding Corp., a leading fitness club operator located in Toronto, Canada. The Extreme Fitness management team, including current co-owner Steve daCosta, was also a significant equity participant in the transaction, financial terms of which were not disclosed.
Founded in 1995 by Mr. daCosta, Extreme Fitness has gyms well-distributed around the Greater Toronto Area and approximately 45,000 members. The gyms, which average 40,000 square feet each, offer cardio and free-weight equipment, personal training, group fitness classes and pool facilities as well as daycare, nutrition and food and retail services.
David S. Moross, chairman and chief executive officer of Falconhead Capital, said: “Extreme Fitness has established itself as a leading fitness club operator in the greater Toronto area based on its powerful combination of attractive facilities, personal training, other value-added services and prime retail locations. It is also an attractive transaction which we sourced on a proprietary basis, and given Falconhead Capitals extensive experience and strong track record in the healthy living and fitness segment of the leisure/lifestyle/recreation industry, this investment is highly complementary to both our skills set and investment strategy. We look forward to working with Steve daCosta and his colleagues on the Extreme Fitness management team to grow the Extreme Fitness brand, presence and membership in and beyond its current geographic footprint, both organically and through selected acquisitions.”
Falconhead Capital will augment the senior management team of Extreme Fitness with the addition of Jim Solomon, a Falconhead Operating Executive, as Chief Executive Officer. Previously, Solomon was President and Chief Executive Officer of Crunch Fitness. In addition, Falconhead has hired David Bell, former Chief Financial Officer of Crunch Fitness, to serve as Chief Financial Officer.
Extreme Fitness is the second investment of Falconhead Capital’s second fund, Falconhead Capital Partners II, L.P.
Falconhead Capital, LLC (www.falconheadcapital.com) is a private equity firm established in 1998 to provide investors with significant long-term capital appreciation by investing globally in consumer-focused businesses in the leisure, lifestyle, recreation and related categories. In addition to Extreme Fitness, Falconhead Capital's current and prior portfolio investments include Escort, Inc., National Powersport Auctions, Premier Salons International, Maritime Telecommunications Network, and ESPN Classic Europe.