L Catterton takes majority stake in Solidcore

By taking control of Solidcore, L Catterton backs a business projecting annual revenue of $100–200M and an EBITDA of $50–100M for 2024 to consolidate its institutional exposure in the boutique fitness segment. Under the terms of the definitive acquisition agreement, L Catterton acquires a majority equity stake in Solidcore from selling institutional investors VMG Partners, Kohlberg & Company, and Peterson Partners. To finance and execute the secondary buyout, L Catterton deploys equity capital directly from its Flagship Fund, with transaction execution guided by Flagship Fund managing partner Marc Magliacano. This institutional ownership transition occurs following the previous exit of founder Anne Mahlum, who sold her remaining equity interest in Solidcore during 2023. Under the ongoing leadership of Solidcore President and Chief Executive Officer Bryan Myers, the recapitalized platform will utilize the sponsor's operational resources to accelerate domestic development, targeting the opening of 25 new studios in 2024 before advancing into underpenetrated regions and international markets to achieve a global target of 250 studios by 2028. The strategic rationale articulated by L Catterton capitalizes on surging structural demand across the boutique reformer category, which recorded a 92% year-over-year increase in class bookings alongside a 25% increase in Yelp search queries. The transaction directly follows another major investment by L Catterton in the health sector completed earlier the same week, wherein L Catterton led a $200 million funding round for Munich-based connected fitness technology provider EGYM at a post-money valuation exceeding $1.2 billion. Prior to entering into exclusive negotiations with L Catterton, Solidcore evaluated external sale alternatives with investment banking advisory firms North Point and Piper Sandler. Through this transaction, selling private equity sponsors VMG Partners, Kohlberg & Company, and Peterson Partners realize liquidity from their investment cycle, while L Catterton establishes a scalable corporate foundation to support the international rollout of the fitness chain.

The acquisition of Solidcore is part of the growth strategy of L Catterton, which already has several external growth operations under its belt, notably Tod’s in 2024.