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Equinox has appointed Brendan Whitworth, most recently CEO of Anheuser-Busch, to lead the luxury fitness company. It also completed a refinancing that the company says gives it more than $1 billion for new clubs, existing-location upgrades and other growth initiatives. Financial terms and the size of the equity investment were not disclosed.
Equinox has appointed Brendan Whitworth, the former chief executive of Anheuser-Busch, as its CEO and completed a refinancing that the company says provides more than $1 billion for new clubs, upgrades and other growth plans. Harvey Spevak, who has led Equinox since 1999, will remain chairman, and Whitworth will join the board.
The company said the financing is intended to support a larger club pipeline, expansion into markets it considers promising and investment in its existing locations. Equinox has about 50 new clubs in its pipeline and operates 118 luxury fitness and wellness clubs across 18 major markets in the United States, Canada and the United Kingdom.
Existing investors Silver Lake, principals of Related Companies and Ares provided additional equity, according to the report. Ares and Sixth Street, both existing lenders, participated in the debt portion. Equinox did not disclose the equity amount or new debt terms, so the financing’s precise structure and cost are not public.
Equinox said recent club openings have exceeded its projections and that the business is recording double-digit top-line growth. It also reported that membership, member activity and check-ins are at all-time highs. Those figures and characterizations come from the company; the report did not provide underlying data or a time period for the comparisons.
Funding Equinox’s Club Expansion
The leadership appointment and refinancing give Equinox both a new CEO and a substantial stated pool of capital as it seeks to expand its physical footprint. For members, the company’s plans could mean new locations and investment in existing clubs, although it has not identified specific sites, construction schedules or upgrade budgets.
The deal also comes as Equinox positions itself beyond conventional gym memberships, with offerings tied to wellness and longevity. The company’s ability to convert its reported growth and member engagement into profitable expansion will matter to investors and lenders, but the undisclosed financing terms make it difficult to assess the cost of the capital or the financial obligations attached to it.
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A New Leader for Equinox
Whitworth most recently ran Anheuser-Busch and held commercial leadership roles there, including chief sales officer. Before joining the brewer, he held senior commercial positions at PepsiCo. He previously 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.
Spevak has led Equinox since 1999 and will stay on as chairman. In recent years, the company has expanded its wellness focus: it introduced Optimize, a membership priced at $3,000 per month, and began working with at-home diagnostic testing platform Function Health. The report says the partnership is intended to help trainers build programs using members’ health data.
Equinox is also preparing to open Equinox Terminal Warehouse in New York’s West Chelsea neighborhood on Nov. 10, according to the source report. The club, set inside a restored 1891 building, is described as the company’s largest move yet into Hyrox-style training and reformer Pilates. Its planned features include a 7,000-square-foot strength floor, team-based circuits, contrast therapy and group Pilates classes.
“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 Undisclosed
The refinancing’s detailed terms remain unknown. Equinox has not disclosed the amount of new equity, the terms or maturity of the debt, or how the more than $1 billion will be allocated among new clubs, renovations and other initiatives. The source report also does not identify the specific markets Equinox plans to enter or give a timetable for its pipeline of about 50 clubs.
The company’s reported double-digit top-line growth and record member activity were not accompanied by figures, comparison periods or independent verification in the material provided. It is also unclear whether the announced financing changes Equinox’s ownership or governance beyond Whitworth joining the board.
Expansion Plans Await Details
Equinox’s next visible milestones include the planned Nov. 10 opening of Terminal Warehouse and further progress on the roughly 50-club pipeline. The company has not published a schedule for those openings or specified which locations will receive upgrades.
Further information about the refinancing, including the debt terms and allocation of funds, would clarify how the company intends to finance its expansion. Whitworth’s early decisions as CEO will also show how Equinox plans to balance new-club growth with investment in its existing network and wellness offerings.
Key Questions
Who is Equinox’s new CEO?
Brendan Whitworth, most recently CEO of Anheuser-Busch, has been named Equinox’s chief executive. He will also join the company’s board.
What is Harvey Spevak’s role now?
Spevak, who has led Equinox since 1999, will remain chairman after Whitworth takes over as CEO.
How much funding did Equinox secure?
Equinox said its completed refinancing provides more than $1 billion for growth. The company did not disclose the equity amount or the terms of the new debt.
What does Equinox plan to spend the money on?
The company said the funds will support new clubs, upgrades to existing locations and other growth initiatives. It has about 50 clubs in its pipeline but has not provided an opening schedule or a market-by-market plan.
When is Equinox Terminal Warehouse expected to open?
The source report says the West Chelsea club is scheduled to open Nov. 10. It describes the site as a restored 1891 landmark with strength training, team circuits, contrast therapy and group Pilates.
Source: athletechnews.com
