Gold’s Gym International, Inc.
At Brockway Moran & Partners, we are committed to growth – tapping the unique expansion opportunities present at each company.
We were approached by an intermediary who represented Kirk and John Galiani, one of Gold’s Gym’s largest and most profitable franchisees, to support their bid to purchase the legendary Gold’s Gym in Venice, California as well as its worldwide franchising and licensing entities. We were immediately attracted to the brand, favorable industry dynamics and the company’s worldwide growth potential. However, it was clear that the company was undercapitalized and did not have a deep enough management team to realize its full potential.
During our five-year ownership period as the majority shareholder, and in colloboration with the Galiani brothers, Gold’s Gym was transformed from an entrepreneurial company into a professionally managed organization. Through the concurrent acquisition of Gold’s Gym and the Galiani franchised locations and through eleven subsequent add-on acquisitions, as well as the construction of five greenfield facilities, Gold’s Gym significantly expanded its corporate-owned gym footprint from its single location in Venice to 37 facilities located in multiple clusters around the country. At the same time, the company professionalized and expanded its domestic and international franchising and licensing operations, adding more than 100 franchised locations around the world for an aggregate number of locations that was greater than 500, and licensing more than 600 Gold’s branded products such as apparel, exercise equipment, fitness accessories, nutritional supplements and publications.
Having exceeded the expansion goals set five years previously and a future filled with additional expansion possibilities, Gold’s Gym was sold to a group led by TRT Holdings, Inc., a family office holding company whose assets include the Omni Hotel chain. And that’s the story of how we “bulked-up” Gold’s Gym.Print