Sixth Street Makes Strategic Growth Investment in the Nation’s Largest Crunch Fitness Franchisee

TAMPA BAY, Fla.--(BUSINESS WIRE)--CR Fitness Holdings (“CR Fitness,” “CR,” or the “company”), the leading franchisee in the Crunch Fitness system, today announced a strategic investment from Sixth Street, a global investment firm, to support the company’s future growth. North Castle Partners, which led a majority investment in 2019 and recapitalized the business in 2022, remains the largest shareholder and will continue to work closely with the company and Sixth Street.

Operating nearly 90 clubs across Florida, Georgia, North Carolina, Texas, and Tennessee, CR Fitness is both the largest Crunch Fitness franchisee by unit count and the system’s leader in unit volumes and sales. CR was co-founded by Vince Julien, Tony Scrimale, and Jeff Dotson, all of whom remain significant shareholders and continue to lead the company. CR will open 24 locations this year, including the prior acquisition of nine 24 Hour Fitness locations in Florida, and plans to open an additional 100+ clubs across the country over the next five years.

Jon Canarick, Managing Partner at North Castle Partners, reflected on the firm’s ongoing partnership with CR Fitness and its growth over the past several years: “Partnering with Tony, Vince, and the CR team since 2019, when the franchisee had just 19 clubs, has been an incredible journey. In six years, the team has solidified CR Fitness as the leading franchisee in the Crunch system with a strong member-first culture. Sixth Street brings deep industry experience and values that align with ours and management’s, making them an ideal partner to support CR in its continued growth.”

Tony Scrimale, CEO of CR Fitness, emphasized the company’s foundation of people and performance: “What sets CR apart is our people. We’ve built a team of talented regional leaders who know how to launch, operate, and grow clubs the right way. That strength, rooted in a disciplined and proven playbook, allows us to expand with impact while keeping members at the heart of everything we do.”

The partnership with Sixth Street marks an important milestone for CR Fitness, providing additional resources to fuel growth and reinforce its position as a leading operator in the high-value, low-price fitness segment.

Kayvan Heravi, Co-Head of Consumer at Sixth Street, expressed his confidence in CR Fitness’s leadership team and its proven track record: “We are extremely excited to partner with Tony, Vince, North Castle, and the entire team at CR Fitness. Their record of execution speaks for itself, and is arguably the best we have seen in the high-value, low-price fitness space. The Crunch Fitness system is growing rapidly due to the strength of its consumer value proposition, and the markets in which CR is expanding are exceptionally attractive.”

Jenny Walsh, Co-Head of Consumer at Sixth Street, echoed that sentiment, highlighting the alignment of values among the three organizations: “We see substantial whitespace ahead for CR Fitness. Beyond the growth opportunity, what stood out for us is how closely our teams are aligned on values: putting members first, empowering great operators, and building for the long term. Our investment is intended to help accelerate new club openings and deepen the focus on the member experience alongside North Castle and the CR leadership team.”

In conjunction with the transaction, Golub Capital provided a new senior debt facility.

Harris Williams served as financial advisor to CR Fitness and Jefferies advised Sixth Street. Morrison Cohen LLP served as legal advisor to CR Fitness & North Castle Partners. Kirkland & Ellis LLP served as legal counsel to Sixth Street.

About CR Fitness Holdings

CR Fitness is the largest franchisee in the Crunch Fitness system, operating nearly 90 clubs across Florida, Georgia, North Carolina, Texas, and Tennessee, with plans to expand into Arizona. Recognized for the system’s highest unit volumes, CR Fitness delivers a high-energy, high-value gym experience built on great programming, welcoming clubs, and community.

About North Castle Partners

North Castle Partners is a leading private equity firm focused on investments in consumer driven product and service businesses that promote healthy, active, and sustainable living. For more than 25 years, the firm has partnered with lower middle-market companies in the (i) fitness, recreation & sports, (ii) nutrition, (iii) beauty & personal care, and (iv) consumer health sectors, among others. North Castle's current and prior portfolio includes well-known brands in four wall services and fitness such as Therabody, The Escape Game, Five Iron Golf, SLT, Barry's, Equinox and Octane Fitness. By combining proven experience, extensive industry networks and a collaborative partnership model, North Castle has a proven track record of building world-class businesses that inspire healthier and more active lifestyles.

About Sixth Street

Sixth Street is a global investment firm with over $115 billion in assets under management and committed capital. The firm uses its long-term flexible capital, data-enabled capabilities, and One Team culture to develop themes and offer solutions to companies across all stages of growth. Sixth Street’s dedicated consumer investing team provides strategic capital solutions to companies operating in a range of subsectors and business models. Sixth Street has partnered with many world-class, global brands including Airbnb, Spotify, the San Antonio Spurs, FC Barcelona, Real Madrid, Legends Global, Bay FC, Mindbody, Chobani, Milan Laser, Equinox, Wingstop, the San Francisco Giants, and the Boston Celtics. Founded in 2009, Sixth Street has more than 700 team members, including over 290 investment professionals around the world. For additional disclosures and more information, visit www.sixthstreet.com and follow Sixth Street on LinkedIn.