In a significant milestone for the fitness and wellness industry, Core Health and Fitness, a leading global player, has announced a new financial partnership with Franklin Square. This collaboration marks an important moment in Core’s ongoing efforts to execute its strategic growth strategy, providing the company with the necessary financial resources to innovate and expand its offerings.
Financial Partnership Alignment
The partnership with Franklin Square is more than just a financial boost; it represents a strategic alignment aimed at fostering growth and innovation.
“The commitment from Franklin Square to provide additional financial resources will enable our company to continue building momentum in serving our customers and partners with quality fitness products and solutions in over 100 countries around the world. Our team of over 1,700 professionals is committed to making Core Health and Fitness the partner of choice in the fitness industry as we work together to share our passion for fitness and make the world a healthier place.”
~Bryan K. O’Rourke, CEO of Core Health and Fitness ~
Commitment To Customer Excellence
The partnership with Franklin Square also reflects Core Health and Fitness’s commitment to excellence and elevating the customer experience. By securing this additional funding, Core can invest more in research and development, leading to innovative products that meet the highest standards of quality and performance.
For customers, this partnership means enhanced access to advanced fitness technologies and solutions. The Core Health and Fitness portfolio includes some of the most recognized brands in the industry, such as StairMaster, Schwinn Indoor Bikes, Nautilus Strength, Star Trac, Wexer, and Throwdown. The additional financial resources will allow Core to continue improving and expanding its product offerings, ensuring that customers have access to the latest and most effective fitness equipment.
Strategic Growth and Innovation
With the new resources from Franklin Square, Core Health and Fitness is well-positioned to leverage emerging technologies and market trends. This partnership will help the company to continue developing new technology and fitness solutions that meet the evolving needs of consumers and fitness professionals globally.
Houlihan Lokey, a leading global investment bank specializing in mergers and acquisitions, capital markets, and financial restructurings, advised Core Health and Fitness on this strategic partnership.
Looking ahead, the strategic growth fueled by this partnership positions Core Health and Fitness to capitalize on new opportunities in the global fitness market. As the company continues to innovate and expand, it remains dedicated to its mission of making the world a healthier place through high-quality fitness products and solutions.
Global Growth And Positioning
Gainline Capital Partners, a notable player in the financial landscape, has also expressed its support for this partnership.
“The team at Gainline is appreciative of the support of Franklin Square and PNC as we continue to support Core and its talented leadership team. Core’s stable of leading brands and unique position in the global fitness industry position the company for continued success and growth.”
~ Rick Sullivan, co-founder of Gainline Capital Partners ~
This endorsement highlights the confidence that key financial stakeholders have in Core Health and Fitness’s ability to drive industry innovation and maintain its leadership position.
The Future Of The Fitness Market
Broader economic trends significantly influence the fitness industry, like many others today. The fitness industry continues to evolve, with 2024 bringing both new challenges and opportunities for growth. Navigating the financial landscape in the fitness industry in 2024 requires a strategic approach. Market conditions, rising interest rates, and increased construction and utility costs present significant challenges.
Over the past 12-18 months, interest rates have been on the rise, making financing more expensive for businesses. This trend is likely to continue, affecting expansion plans for many fitness related businesses. Higher financing costs can potentially limit growth, making it crucial for businesses to find cost-effective financing solutions.
All fitness businesses have experienced surging costs for equipment, manufacturing, operations, and construction costs (30-40%). In addition, utility costs have increased by 15%, further adding to the financial burden on businesses looking to expand or upgrade their facilities and product lines.
Core’s Strategic Growth Strategy
Core Health and Fitness’s new financing partnership with Franklin Square is a pivotal development in the company’s journey toward strategic growth and innovation. With enhanced financial resources, Core is well-equipped to continue leading the fitness industry with groundbreaking solutions and a commitment to excellence. This partnership not only benefits Core and its stakeholders but also promises to deliver greater value and innovation to customers around the world.
As Bryan K. O’Rourke aptly stated, this partnership is about more than just financial support; it is about building momentum and making a significant impact in the fitness industry. With the backing of Franklin Square, Core Health and Fitness is poised to achieve new heights in its mission to promote health and wellness globally.
Press Release: Core Health and Fitness CEO Bryan O’Rourke Announce New Financial Partner Franklin Square
About Franklin Square
Franklin Square is a leading manager of alternative investment funds designed to enhance investors’ portfolios by providing access to asset classes, strategies and asset managers that typically have been available to only the largest institutional investors. The firm’s funds offer “endowment-style” investment strategies that help construct diversified portfolios and manage risk. Franklin Square strives not only to maximize investment returns but also to set the industry standard for best practices by focusing on transparency, investor protection and education for investment professionals and their clients.
Founded in Philadelphia in 2007, Franklin Square quickly established itself as a leader in the world of alternative investments by introducing innovative credit-based income funds, including the industry’s first non-traded BDC. As of December 31, 2015, the firm managed approximately $16.8 billion in total assets, including $15.5 billion in BDC assets, making it the largest manager of BDCs. For more information, please visit www.franklinsquare.com.
