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Equinox named Anheuser-Busch chief executive Brendan Whitworth as its CEO and completed a refinancing that the company says provides more than $1 billion for growth. Chairman Harvey Spevak will remain in that role, while the size of the equity investment and terms of the new debt were not disclosed.
Equinox has named Brendan Whitworth, the outgoing chief executive of Anheuser-Busch, as its CEO and completed a refinancing that it says gives the luxury fitness company more than $1 billion for new clubs, existing-location upgrades and other growth initiatives. Harvey Spevak, who has led the company since 1999, will remain chairman, Equinox said Monday.
Whitworth will also join Equinox’s board. His appointment comes as the company plans to accelerate openings from a pipeline of about 50 clubs, pursue markets it views as high potential and reinvest in its current locations. Equinox operates 118 clubs in 18 major markets across the United States, Canada and the United Kingdom.
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 equity investment’s size or the terms of the new debt, so the public details do not show how the financing is divided between equity and borrowing.
Equinox said recent club openings have exceeded its projections and that the business is recording double-digit top-line growth, with membership, activity and check-ins at all-time highs. Those are company-reported performance figures; the announcement did not provide specific revenue or membership totals.
Funding Equinox’s Club Expansion
The leadership change and refinancing give Equinox both a new CEO and capital to pursue a larger expansion program. The company says it intends to add clubs while also upgrading its existing network, a strategy that could affect its footprint in major cities and the level of investment members see at current locations.
The deal also arrives as operators compete for prominent fitness locations. In New York City, gym operators have signed some of the largest recent retail leases, according to the source report. Equinox is among the companies seeking space in that market, where its existing presence is strong. The more than $1 billion in available funding could support its plans, though the company has not specified how much will go to new locations versus renovations or other initiatives.
Whitworth’s move from brewing to luxury fitness puts an executive with experience in sales and commercial leadership at the helm of a membership-based business. Whether that background translates into faster openings or changes to Equinox’s operating approach remains to be seen.
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A Fitness Business Expanding Its Offer
Whitworth most recently served as CEO of Anheuser-Busch. Earlier in his career, he held commercial leadership roles there, including chief sales officer, and senior commercial roles at PepsiCo. Before entering the private sector, he served as an officer in the U.S. Marine Corps. He holds an economics degree from Bucknell University and an MBA from Harvard Business School.
Equinox has also expanded its focus beyond conventional gym access into health and longevity offerings. In the past two years, it introduced Optimize, a membership priced at $3,000 per month, and began working with at-home diagnostic testing platform Function Health to help trainers use members’ health data in program design. These initiatives provide context for the company’s stated interest in fitness, wellness and longevity, but Equinox did not say how much of its new financing is earmarked for those services.
The company is also set to open Equinox Terminal Warehouse on Nov. 10 in New York’s West Chelsea neighborhood. The club, located in a restored 1891 landmark, will include a 7,000-square-foot strength floor, team-based circuits, contrast therapy and group reformer Pilates classes. The source report described it as the operator’s biggest move yet into Hyrox-style training and reformer Pilates.
“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.”
— Equinox chairman Harvey Spevak
Financing Terms Still Undisclosed
Equinox has not published the size of the equity infusion, the terms of the new debt or a detailed allocation of the more than $1 billion. It is not clear how quickly the roughly 50-club pipeline will turn into openings, which markets will be prioritized, or how much capital will be directed to upgrades and other growth projects.
The company’s claims about double-digit top-line growth and record membership activity were not accompanied by underlying figures in the supplied report. The announcement also did not specify Whitworth’s start date or describe any immediate changes to Equinox’s strategy, leadership team or member offerings.
Whitworth Takes Up the CEO Role
The next milestones are Whitworth’s start in the role and Equinox’s decisions on how to deploy its financing across the club pipeline and existing locations. The company has not released a timetable for the planned openings or named the markets it intends to enter.
Separately, Equinox Terminal Warehouse is scheduled to open on Nov. 10. Its opening will provide a near-term example of the company’s investment in a new club and in training and wellness formats. Further information about the financing terms and expansion schedule would clarify how the new leadership and capital translate into changes for the business.
Key Questions
Who is Equinox’s new CEO?
Brendan Whitworth, most recently the CEO of Anheuser-Busch, has been named Equinox’s chief executive. He will also join the company’s board.
What is happening to Harvey Spevak?
Spevak, who has led Equinox since 1999, will remain chairman after Whitworth takes over as CEO.
How much financing did Equinox secure?
Equinox said its completed refinancing gives it more than $1 billion for new clubs, upgrades and other growth initiatives. It has not disclosed the equity amount or the terms of the debt.
What does Equinox plan to do with the money?
The company says it will use the funding for new clubs, upgrades to existing locations and other growth plans. It has not provided a detailed breakdown or opening timetable.
How many clubs does Equinox operate?
Equinox said it operates 118 clubs across 18 major markets in the United States, Canada and the United Kingdom, and has a pipeline of about 50 additional clubs.
Source: athletechnews.com
