|
 SoulCycle's IPO preparations underscore the growing popularity of
boutique chains that cater to specific workout methods such as
spinning, yoga and barre. The chains, which often charge per class
rather than a monthly membership fee, have been taking market share
from traditional big-box gyms.
New York-based SoulCycle, which charges around $34 for a 45-minute
spin session, is working with Goldman Sachs and Bank of America on
the potential stock market flotation, the sources said this week.
An IPO filing under the U.S. JOBS Act, which allows small companies
to file confidentially with regulators, could come as soon as this
summer, the sources added. SoulCycle's potential valuation could not
be learned.
Since 2011, SoulCycle has been majority-owned by luxury gym chain
Equinox Holdings, which is owned by real estate firm Related Cos and
buyout firm Leonard Green & Partners LP.
The sources asked not to be identified because the IPO plans are
confidential. SoulCycle, Equinox and Leonard Green did not respond
to requests for comment. Related Cos, Goldman and Bank of America
declined to comment.
Many SoulCycle classes led by popular instructors sell out within
minutes, and customers pay up to $70 a class for perks such early
registration.
Classes, including 60-minute Soul Survivor and 90-minute Soul
Challenge, combine cardio with dance choreography and hand weights.
SoulCycle also has a retail clothing line, featuring sweatpants,
zip-up shirts and tote bags with printed slogans and
skull-and-crossbones.
SoulCycle has more than 42 U.S. locations, and plans to open 50 to
60 studios worldwide by next year, according to its website.
[to top of second column] |
SoulCycle was founded in 2006 by former real estate broker Elizabeth
Cutler and former talent agent Julie Rice, who opened their first
studio on Manhattan's Upper West Side.
SoulCycle accounted for 12 percent of Equinox revenue in the 12
months ended September 2014, but is its fastest-growing segment,
according to Moody's Investors Service Inc.
Many traditional gym chains have struggled. Town Sports
International Holdings Inc said in February it was exploring
strategic alternatives, including a sale. Earlier this month, Life
Time Fitness Inc was taken private by private equity firms TPG
Capital and Leonard Green for more than $4 billion.
Fast-growing budget gym chain Planet Fitness filed for an IPO on
Monday.
(Additional reporting by Mike Stone; Editing by Jeffrey Benkoe)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
