McLEAN, Va., March 12, 2012 (GLOBE NEWSWIRE) -- To Titan Fitness President and CEO Jeff Skeen the numbers from a fitness industry study are disappointing. Despite the overwhelming evidence touting the benefits of exercise,only 15 percent of Americans belong to a fitness facility. He and his McLean-based fitness management experts believe they have the answer to capturing a larger segment: Bring fitness to the people.
"People need to feel connected to wellness and to fitness," says Skeen, reacting to a study conducted by the International Health and Racquet Sport Association (IHRSA). "We are staring down the barrel of a full-blown health crisis in this country and we need to do everything imaginable to get people to embrace a culture of wellness."
To that end, Titan Fitness (www.titanfitnessllc.com) recently acquired a Houston-based gym chain that seemed like a natural fit to the company's goals. Fitness Connection is an upstart consisting of nine Texas gyms that immediately grew to 17 clubs when Titan converted eight of their previously owned gyms in North Carolina and Nevada to the Fitness Connection brand late last year.
The move allows Titan Fitness, previously affiliated with a leading international gym chain, to develop a localized brand into a national one. Besides Titan becoming one of the largest fitness chains in the United States, the change in brand will allow the company the flexibility to expand more into the area of corporate wellness.
Connecting People To Fitness
"Fitness Connection (www.fitnessconnectionusa.com) is a name which reflects our desire as a company to reach that 85 percent of the American population that isn't coming into health clubs," Skeen said. "A big part of our messaging is about connecting people to health and fitness and being a solution to the health care crisis."
Fitness Connection offers programs such as boot camps – where no gym membership is required – and is looking at providing corporate wellness programs that can be offered outside the walls of the clubs. Skeen sees this as a critical course that is necessary to get people involved in health and wellness.
"We see trends developing with companies and doctors becoming more pro-active rather than reactive with regard to the health of their employees and patients. More companies are seeking ways to integrate wellness and nutritional counseling within the framework of their business and these are areas in which we excel."
Seeking Partners to Grow Fitness Connection Brand
Titan is considering a number of potential health club and corporate wellness company acquisitions. Titan is hopeful of having more than 60 locations in five years as well as providing a fully integrated corporate wellness offering to companies in each of its markets.
Titan's criteria for health club acquisitions is that the chain in discussion has at least $1.5 million in regional EBITDA, is in a market that has the potential for growth and is one of the top three operators in that market. As for acquisitions in the corporate wellness space, Titan will consider an EBITDA that is less than what it looks for in the health club industry.
As is standard in acquisitions by Titan Fitness, the management team at each of its acquisitions stays on board. This practice allows Titan Fitness to be opportunistic in its purchases rather than geographic, which accounts for why Titan's clubs are located in different parts of the country: North Carolina, Nevada and Texas.
When asked about growth, Skeen acknowledges that their team is much more focused on optimizing returns for its investors instead of how large they can build their organization; however, Titan's executive team's desire to impact as many people's health as possible will lead them to grow the organization.
About Titan Fitness
Located in McLean, Va., Titan Fitness is the parent company of Fitness Connection. Fitness Connection has locations in North Carolina, Texas and Nevada. With more than 70 years of direct fitness industry experience, Titan Fitness is a recognized leader in the fitness industry for its acquisition, development and management of health clubs. Backed by a $500 million private equity fund, Titan Fitness plans to develop and operate health clubs on a national basis under the Fitness Connection brand. Titan Fitness has been involved in the operation and acquisition of more than 90 health clubs. For more information, visit www.titanfitnessllc.com.