TRX® Completes Strategic Growth Recapitalization
Equity38, an investment firm with a focus on lower middle-market companies in the health and wellness sector, invested in fitness company TRX.
Equity38, an investment firm with a focus on lower middle-market companies in the health and wellness sector, invested in San Francisco-based fitness company TRX.
San Francisco, CA – TRX® is pleased to announce it has successfully recapitalized the business with a strategic growth capital investment from Equity38, LLC (“Equity38”). Structured as a management buyout of previous investors by Equity38, the partnership was ideal for TRX in that it maintains the company’s existing infrastructure, led by Founder/CEO Randy Hetrick. The investment arms TRX with the capital, category expertise, and resources from Equity38 to further develop the TRX brand to a higher level.
Hetrick created a forerunner to the TRX Suspension Trainer® while deployed to Southeast Asia out of necessity to keep his squadron fit without transporting heavy training equipment to remote locations. After 14 years in the Navy, culminating his career as Squadron Commander, Hetrick attended Stanford University to earn his MBA. At Stanford, Hetrick refined the Suspension Trainer and developed the TRX System after gaining the attention of Stanford athletes, coaches, and trainers. TRX revitalized the category of bodyweight training and its products are patented, highly portable, and provide hundreds of exercises for a total workout experience. Since its inception, TRX has sold millions of units to trainers and clubs around the world and has broadened its product line to include an entire ecosystem of functional training gear, infrastructure, professional education courses, and individualized exercise content.
Equity38 is a consumer-focused private equity firm co-founded in 2018 by Brent Leffel and David Cox. Leffel and Cox bring significant category experience to the partnership, having previously worked as principal investors, C-level executives and board directors with prominent fitness brands that include New Evolution Ventures, UFC GYM, US Fitness, Crunch Fitness, Barry’s Bootcamp, and Orange Theory Fitness.
“The FocalPoint team was terrific,” said Brent Leffel, Managing Partner at Equity38. “They were in market 14 days after we engaged them, and we had a signed Letter of Intent less than a month later. FocalPoint delivered beyond our expectations and met our expedited timeline to close, making this an extremely positive experience.” Leffel added, “The equity investment and flexible debt structure will provide us with the ability to enhance our global infrastructure and expand TRX’s offerings. We could not be happier with the outcome.”
“I couldn’t be more excited to welcome the Equity38 team into the TRX family,” said Randy Hetrick. “In addition to arming TRX with a war chest of growth capital, Equity38 brings deep experience in our industry and their active involvement in the business and stewardship will be an important part of our next chapter.”
Thomas Mills, Managing Director of FocalPoint, commented, “Our team is thrilled to have delivered this exceptional outcome for Equity38 and TRX. It marks another closing where our Capital Markets practice was engaged by a Sponsor to run an efficient and market clearing process, trusting our team to find them the market’s best available partner and deal structure.”
Duane Stullich, Managing Partner of FocalPoint, added, “We have been extremely active in the ever-growing Health & Wellness sector dating back to 2002 when we helped Brent Leffel and his former firm restructure Crunch Fitness. Since then, we have completed countless assignments in the sector, which we define as health clubs, mass participation sporting events, healthy food and beverage, natural personal care products, wellness services, and sports equipment like TRX.”
About TRX®
As the global leaders in functional training, the company’s mission is to democratize world class training and enable everyone, everywhere to move better throughout life. TRX develops the world’s best training equipment, workout programs, and education courses to help people of all fitness levels become better versions of themselves. The company is also the industry’s leading provider of specialized education courses for fitness professionals. TRX redefined the application of bodyweight training to enhance human performance and has successfully disrupted the mature landscape of the health club industry. For more information about TRX, please visit www.TRXTraining.com.
About Equity38, LLC
Equity38, LLC is a boutique principal investment firm focused on lower middle market opportunities in the consumer-facing Health/Wellness, Active Lifestyle, and Outdoor sector. The firm’s Managing Partners have complementary experience as principal investors, entrepreneurs, board members, and C-level industry executives. The firm was founded in 2018 by Brent Leffel and David Cox with offices in Newport Beach, CA and Atlanta, GA. Equity38, LLC is currently investing out of its first committed fund. For more information, please visit www.equity38.com.
About FocalPoint Partners, LLC
FocalPoint is an independent investment bank specializing in mergers and acquisitions, private placements, financial restructurings, and special situation transactions. With offices in Los Angeles, Chicago, and New York, the firm serves middle-market clients throughout the U.S. and has a dedicated focus on the consumer sector. During the past 16 years, FocalPoint has completed more than $8.5 billion in total transactions. For more information, please visit www.focalpointllc.com.
Please contact Tom Mills, Managing Director, at (312) 508-5777, or Duane Stullich, Managing Partner, at (310) 405-7070 with any questions about this transaction.
