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Equinox has named Anheuser-Busch chief executive Brendan Whitworth as its CEO and completed a refinancing that the company says provides more than $1 billion for expansion and club upgrades. Harvey Spevak will remain chairman. Equinox has not disclosed the financing’s terms or the size of the equity contribution.
Equinox has appointed Anheuser-Busch CEO Brendan Whitworth to lead the luxury fitness chain and says a completed refinancing provides more than $1 billion for new clubs, upgrades and other growth plans. Longtime leader Harvey Spevak, who has headed Equinox since 1999, will remain chairman, the company said Monday.
Whitworth will also join Equinox’s board. His appointment brings a new chief executive to a business seeking to accelerate club openings, pursue markets it views as promising and invest in its existing locations. Equinox said it has a pipeline of about 50 new clubs, though it did not provide a timetable for completing those projects.
The company said the refinancing includes additional equity from existing investors Silver Lake, principals of Related Companies and Ares. Existing lenders Ares and Sixth Street participated in the debt portion. Equinox did not disclose the amount of new equity, the debt terms or a more detailed breakdown of the financing. The stated figure of more than $1 billion is the amount it says is available for growth initiatives.
Equinox operates 118 clubs in 18 markets across the United States, Canada and the United Kingdom. The company said recent openings have exceeded projections and that it is recording double-digit top-line growth, with membership, club activity and check-ins at all-time highs. Those performance figures are company statements; the report does not provide underlying data or a comparison period.
Funding Equinox’s Next Expansion
The combination of a new CEO and more than $1 billion in stated growth funding gives Equinox resources to pursue a larger club network while upgrading its current footprint. How quickly that money translates into openings will depend on execution, site availability and the financing terms, which have not been made public.
The deal also places an executive with senior experience at Anheuser-Busch and PepsiCo at the head of a company selling premium fitness and wellness services. Equinox has been expanding its focus beyond traditional gym memberships, and the leadership change comes as it looks to respond to consumer interest in fitness, health and longevity. The appointment alone does not establish how Whitworth will change the company’s strategy.
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A Fitness Brand Broadening Its Offer
Whitworth most recently led Anheuser-Busch as CEO and previously held commercial leadership roles there, including chief sales officer. Before that, he held senior commercial roles at PepsiCo. He served as an officer in the U.S. Marine Corps and holds an economics degree from Bucknell University and an MBA from Harvard Business School.
Equinox has added offerings that reach into longevity and health data. In the past two years, it introduced Optimize, a $3,000-per-month membership, and began working with Function Health, an at-home diagnostic testing platform, to help trainers build programs around members’ health data. Separately, the company is set to open Equinox Terminal Warehouse in New York’s West Chelsea on Nov. 10, according to the report. The planned club is in a restored 1891 building and includes strength training, group circuits, contrast therapy and Pilates.
Equinox’s growth plans are part of a competitive market for fitness locations, particularly in New York City, where the report says gym operators have secured several large retail leases. That pressure for prime sites is relevant to the company’s plans, but Equinox has not identified which markets its pipeline will serve.
“Having known Brendan for several years, I was personally involved in bringing him to Equinox, and I’m thrilled to welcome him as our CEO.”
— Harvey Spevak, Equinox chairman
Financing Terms Still Private
Equinox has not disclosed the size of the equity investment, the terms of its new debt or how the more-than-$1-billion total is divided among planned projects. The source report also does not specify the announcement date beyond saying it came Monday. The company has not named the locations, opening schedule or budgets for clubs in its pipeline of about 50.
Equinox’s statements about double-digit revenue growth and record membership and check-ins are not accompanied by figures, time periods or baselines in the report. It is also not yet clear whether Whitworth will introduce changes to the company’s strategy or leadership beyond the CEO appointment.
Club Openings Under Whitworth
The next visible test will be whether Equinox converts its stated financing capacity and pipeline into scheduled club openings and upgrades. The company has not announced a project-by-project plan, so further details about target markets, timing and spending remain pending.
Whitworth takes over as CEO while Spevak remains chairman. Equinox is also scheduled to open its Terminal Warehouse club on Nov. 10, according to the report. That opening is a separate development from the financing announcement, but it offers a near-term example of the company’s investment in new facilities and training formats.
Key Questions
Who is Equinox’s new CEO?
Brendan Whitworth, the outgoing Anheuser-Busch CEO, has been appointed to lead Equinox. He will also join the company’s board.
What does Equinox plan to do with the $1 billion-plus?
Equinox says the financing will support new clubs, upgrades to existing locations and other growth initiatives. It has not disclosed a detailed spending plan.
Will Harvey Spevak leave Equinox?
No. Spevak, who has led Equinox since 1999, will remain chairman after Whitworth becomes CEO.
Who backed the refinancing?
Equinox said existing investors Silver Lake, principals of Related Companies and Ares provided additional equity. Ares and Sixth Street participated in the debt portion as existing lenders. The company has not disclosed the deal’s terms.
How many clubs does Equinox operate?
The company operates 118 clubs in 18 markets across the United States, Canada and the United Kingdom, according to the source report.
Source: athletechnews.com
