*

Gym chain has around 2.5 million members worldwide

*

Potential acquirers include other private equity firms

-sources

*

Sale process could be launched in first half of 2025 -

source

By Abigail Summerville

NEW YORK, Dec 3 (Reuters) - Buyout firm TPG is weighing

a potential sale of Crunch Fitness that could value the gym

chain at more than $1.5 billion, including debt, people familiar

with the matter told Reuters on Tuesday.

TPG, which acquired Crunch Fitness through its buyout arm

that focuses on small and mid-sized acquisitions, is working

with investment bank Jefferies on a sale process that could be

launched during the first half of next year, one of the sources

said, requesting anonymity as the matter is confidential.

TPG and Jefferies declined to comment. Crunch Fitness did

not immediately respond to a request for comment.

Potential acquirers of Crunch Fitness include other private

equity firms, the sources said.

Based on comparable transactions in the industry, Crunch

could command a valuation equivalent to more than 15 times its

12-month earnings before interest, taxes, depreciation, and

amortization of about $100 million, the sources said.

Private equity firms have traditionally been prolific

investors in the fitness and wellness industry, as they are

attracted to the predictable cash flows from subscription

memberships and the opportunity to franchise locations.

In September, consumer-focused buyout firm L Catterton

struck a deal to acquire pilates chain Solidcore for between

$600 million and $700 million, Reuters reported. In October,

Josh Harris-backed investment firm 26North Partners agreed to

buy Onelife Fitness.

Founded in 1989, Crunch Fitness started out with a basement

fitness studio in New York's Greenwich Village. The gym chain,

which currently has around 2.5 million members worldwide,

operates and franchises over 460 gyms in the United States,

Australia, Canada, Costa Rica, Portugal, Puerto Rico, and Spain.

In 2009, fitness industry veterans Mark Mastrov and Jim

Rowley, who led rival gym chain 24 Hour Fitness, teamed up with

the private equity arm of Angelo Gordon to buy Crunch Fitness

out of bankruptcy.

Crunch Fitness competes with other gym chains like Planet

Fitness ( PLNT ), which listed its shares through an initial

public offering in 2015, and privately-held 24 Hour Fitness.

TPG Growth, which acquired Crunch for an undisclosed amount

in 2019, has invested in numerous companies across several

industries, including life sciences firm Precision Medicine,

cybersecurity firm Tanium, and ride-hailing app operator Uber ( UBER )

.