Photo: Jess Hawsor (archive photo)
Equinox named Anheuser-Busch chief Brendan Whitworth its next chief executive on Monday as the luxury fitness company outlined more than $1 billion in capital planned for growth investments following a refinancing and new equity backing from existing investors.
Harvey Spevak, who has led Equinox since 1999, will serve as chairman, while Whitworth will also join the board, the company said in its announcement.
The move pairs a leadership handoff with funding for expansion across a business that says it operates 118 clubs in 18 major markets and has approximately 50 additional clubs in its pipeline.
Growth capital, not a purchase price
Equinox said it had recently completed a refinancing that strengthened its balance sheet and provided more than $1 billion in capital planned for its global club portfolio, member experience and strategic growth initiatives.
The figure is not an acquisition price. The transaction combined additional equity from existing investors Silver Lake, principals of Related Companies and Ares with participation by existing lenders Ares and Sixth Street in the debt refinancing, according to the company.
Equinox did not disclose in the announcement how much of the total came from each investor or lender. It also did not provide a full breakdown between new debt, refinanced obligations and equity.
A consumer-business leader moves into fitness
Whitworth most recently served as chief executive of Anheuser-Busch. His earlier roles included chief sales officer at the brewer and commercial leadership positions at PepsiCo. He served in the U.S. Marine Corps before entering the private sector and holds degrees from Bucknell University and Harvard Business School, Equinox said.
“I take seriously the responsibility of upholding that standard of excellence and earning our members’ loyalty day in and day out,” Whitworth said in the company’s statement.
Spevak said he had been personally involved in bringing Whitworth to the company and would work with him as chairman.
Expansion plans rest on company-reported momentum
Equinox said it planned to accelerate openings in its pipeline, expand into additional markets and invest in existing clubs. Its current network spans the United States, Canada and the United Kingdom.
The company described double-digit revenue growth and said membership, activity and check-ins were at record levels. It did not provide dollar revenue, profit figures or detailed membership totals in the announcement, so those operating claims should be read as company-reported measures rather than a full financial disclosure.
The new capital gives Equinox funding for a larger club network and improvements to existing locations. The announcement did not set completion dates for the roughly 50-club pipeline or identify the opening schedule for individual markets.
JBizNews Desk | New York
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