Spectrum Clubs Acquires Gold’s Santa Barbara Franchisee
Spectrum Clubs, a portfolio company of Brentwood Associates, an LA-based private equity firm, has completed the acquisition of SB Flex, Inc. formerly doing business as Gold’s Gym of Santa Barbara. This transaction expands Spectrum’s California footprint into the Central Coast and brings the total locations (in California and Texas) to twenty.
“We are excited about joining the Spectrum team,” said Tony Calhoun, President and General Manager of SB Flex, Inc.
This transaction follows the recent increase in M&A activity in the health club industry. However, the closing was no “slam dunk” according to Duane Stullich, Managing Director of FocalPoint. “This was a very complicated transaction given issues surrounding the Gold’s Gym franchise agreements. That said, M&A activity in the health club industry has reached a frenzy following the recent high-profile transactions in the sector.”
About SB Flex, Inc.
SB Flex is the dominant health club operator in the Santa Barbara/Goleta market with three locations. The company has an unrivalled reputation in the local market derived from over 18 years of exemplary service, consistently winning the Best Health Club or Gym award in Santa Barbara as chosen by the Santa Barbara Independent, Readers Poll.
About Spectrum Health Clubs
Spectrum traces its roots to 1979 when it was part of The Sports Club Company. In 1999, Spectrum was sold by the Sports Club Company to its current owner and operator Brentwood Associates, a private equity firm based in Los Angeles. Today, Spectrum Health Clubs is the 10th largest company in the industry, with eleven clubs in California and nine clubs in Texas.
FocalPoint is an independent investment bank, specializing in mergers & acquisitions and in raising capital for growing companies. The firm’s primary focus is on middle-market companies with revenues between $5 million and $100 million and has a particular expertise in the health club sector.
Please contact Duane Stullich at (818) 728-6046 with any questions about this transaction.