Connect with us

Fitness

Interactive Strength Plans Strategic Acquisition of $40M Revenue Fitness Equipment Maker

Published

3 hours ago

on

Interactive Strength Plans Strategic Acquisition of M Revenue Fitness Equipment Maker





Interactive Strength (TRNR) has signed an exclusive non-binding letter of intent to acquire a connected-fitness equipment company with over $40 million in revenue and positive EBITDA. The transaction will be structured as 100% equity consideration and is expected to close as early as Q1 2025. This marks TRNR’s second acquisition within 12 months, advancing its strategy of making accretive acquisitions in the global health & wellness market. The target company’s complementary product and customer footprint will expand TRNR’s equipment and brand range.

Interactive Strength (TRNR) ha firmato una lettera di intenti esclusiva non vincolante per acquisire un’azienda di attrezzature per il fitness connesso, con oltre 40 milioni di dollari di fatturato e un EBITDA positivo. La transazione sarà strutturata come un’operazione totalmente in capitale ed è attesa per chiudersi già nel primo trimestre del 2025. Questo segna la seconda acquisizione di TRNR nell’arco di 12 mesi, facendo avanzare la sua strategia di acquisizioni accrescitrici nel mercato globale della salute e del benessere. I prodotti complementari dell’azienda target e la sua clientela espanderanno la gamma di attrezzature e marchi di TRNR.

Interactive Strength (TRNR) ha firmado una carta de intención no vinculante y exclusiva para adquirir una empresa de equipos de fitness conectados, con más de 40 millones de dólares en ingresos y un EBITDA positivo. La transacción se estructurará como una consideración del 100% en acciones y se espera que se cierre tan pronto como en el primer trimestre de 2025. Esto marca la segunda adquisición de TRNR en 12 meses, avanzando en su estrategia de realizar adquisiciones que añadan valor en el mercado global de salud y bienestar. Los productos complementarios de la empresa objetivo y su base de clientes ampliarán la gama de equipos y marcas de TRNR.

Interactive Strength (TRNR)는 4천만 달러 이상의 매출과 긍정적인 EBITDA를 기록한 연결 피트니스 장비 회사를 인수하기 위한 비구속 독점 양해각서를 체결했습니다. 이 거래는 100% 자본 고려로 구조화될 것이며 2025년 1분기 as early as 종료될 것으로 예상됩니다. 이는 TRNR의 12개월 이내 두 번째 인수로, 글로벌 건강 및 웰니스 시장에서 가치 있는 인수를 추진하는 전략을 진전시키고 있습니다. 목표 회사의 보완적인 제품과 고객 기반은 TRNR의 장비 및 브랜드 범위를 확장할 것입니다.

Interactive Strength (TRNR) a signé une lettre d’intention exclusive non contraignante pour acquérir une entreprise d’équipements de fitness connectés, générant plus de 40 millions de dollars de revenus et un EBITDA positif. La transaction sera structurée comme une considération en capital de 100 % et devrait être finalisée dès le premier trimestre 2025. Cela marque la deuxième acquisition de TRNR en 12 mois, avançant sa stratégie d’acquisitions créatrices de valeur sur le marché mondial de la santé et du bien-être. Les produits complémentaires de la société cible et sa base de clients élargiront la gamme d’équipements et de marques de TRNR.

Interactive Strength (TRNR) hat ein exklusives, nicht verbindliches Absichtserklärung zur Übernahme eines Unternehmens für vernetzte Fitnessgeräte unterzeichnet, das über 40 Millionen Dollar Umsatz und ein positives EBITDA verfügt. Die Transaktion wird als 100% Eigenkapitalübernahme strukturiert und soll frühestens im ersten Quartal 2025 abgeschlossen werden. Dies markiert die zweite Übernahme von TRNR innerhalb von 12 Monaten und unterstützt die Strategie, wertschöpfende Übernahmen im globalen Gesundheits- und Wellnessmarkt vorzunehmen. Das komplementäre Produkt- und Kundenportfolio des Zielunternehmens wird das Angebot und die Markenreichweite von TRNR erweitern.

Positive


  • Target company has over $40 million in revenue


  • Target company has positive EBITDA


  • Transaction expected to be accretive to financial results


  • No cash consideration required (100% equity deal)


Negative


  • Non-binding letter of intent indicates deal uncertainty


  • 100% equity consideration suggests potential shareholder dilution


Insights



This potential acquisition marks a significant strategic move for Interactive Strength. The target company’s $40 million revenue profile and positive EBITDA could substantially enhance TRNR’s market position in the connected fitness space. The all-equity structure preserves cash while potentially offering synergistic benefits. With TRNR’s current market cap around $2.9 million, this acquisition would represent a transformative deal, potentially multiplying their revenue base significantly. The focus on profitable targets in the fragmented health & wellness market shows a disciplined approach to inorganic growth. However, investors should note this is a non-binding LOI and final terms, valuation and closing conditions are yet to be determined.


The connected fitness equipment market remains dynamic despite post-pandemic normalization. This strategic move could strengthen TRNR’s competitive position by expanding their product portfolio beyond CLMBR and FORME brands. The target’s established revenue stream and positive EBITDA provide immediate scale advantages in a market where profitability has been challenging for many players. The complementary product footprint suggests potential cross-selling opportunities and improved market penetration. This consolidation play in a fragmented market could help TRNR achieve economies of scale and enhance their bargaining power with suppliers and distribution channels.












  • Exclusive Non-Binding Letter of Intent signed with Target that has more than $40 million in revenue and positive EBITDA in 100% equity consideration transaction

  • Acquisition is expected to be TRNR’s second transaction within 12 Months

  • Advances strategy of using public listing to make accretive acquisitions of profitable and high-growth businesses in the highly fragmented health & wellness market globally

  • Target’s complementary product and customer footprint Expands TRNR’s range of equipment and brands

AUSTIN, TX / ACCESSWIRE / December 12, 2024 / Interactive Strength Inc. (Nasdaq:TRNR) (“TRNR” or “the Company”), maker of innovative specialty fitness equipment under the CLMBR and FORME brands, today announced that the Company has signed a non-binding letter of intent and exclusivity agreement to acquire a connected-fitness equipment company. The proposed transaction is expected to close as early as the first quarter of 2025 and be accretive to TRNR’s financial results.

For more commentary, information and details on the rationale for and structure of the acquisition, please see TRNR’s shareholder update on the Company’s investor website.

TRNR Investor Contact

ir@interactivestrength.com

TRNR Media Contact

forme@jacktaylorpr.com

About Interactive Strength Inc.:

Interactive Strength Inc. produces innovative specialty fitness equipment and digital fitness services under two main brands: 1) CLMBR and 2) FORME. Interactive Strength Inc. is listed on NASDAQ (symbol:TRNR).

CLMBR is a vertical climbing machine that offers an efficient and effective full-body strength and cardio workout. CLMBR’s design is compact and easy to move – making it perfect for commercial or in-home use. With its low impact and ergonomic movement, CLMBR is safe for most ages and levels of ability and can be found at gyms and fitness studios, hotels, and physical therapy facilities, as well as available for consumers at home. www.clmbr.com.

FORME is a digital fitness platform that combines premium smart gyms with live virtual personal training and coaching to deliver an immersive experience and better outcomes for both consumers and trainers. FORME delivers an immersive and dynamic fitness experience through two connected hardware products: 1) The FORME Studio Lift (fitness mirror and cable-based digital resistance) and 2) The FORME Studio (fitness mirror). In addition to the company’s connected fitness hardware products, FORME offers expert personal training and health coaching in different formats and price points through Video On-Demand, Custom Training, and Live 1:1 virtual personal training. www.formelife.com.

Forward Looking Statements:

This press release includes certain statements that are “forward-looking statements” for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements do not relate strictly to historical or current facts and reflect management’s assumptions, views, plans, objectives and projections about the future. Forward-looking statements generally are accompanied by words such as “believe”, “project”, “expect”, “anticipate”, “estimate”, “intend”, “strategy”, “future”, “opportunity”, “plan”, “may”, “should”, “will”, “would”, “will be”, “will continue”, “will likely result” or similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding the possibility of completing this or other acquisitions, as well as the acquisition being accretive to the Company’s financial results. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of the Company. Risks and uncertainties include but are not limited to: demand for our products; competition, including technological advances made by and new products released by our competitors; our ability to accurately forecast consumer demand for our products and adequately maintain our inventory; and our reliance on a limited number of suppliers and distributors for our products. A further list and descriptions of these risks, uncertainties and other factors can be found in filings with the Securities and Exchange Commission. To the extent permitted under applicable law, the Company assumes no obligation to update any forward-looking statements.

SOURCE: Interactive Strength Inc

View the original press release on accesswire.com








FAQ



What is the revenue of the company TRNR plans to acquire?


The target company has more than $40 million in revenue and positive EBITDA.


When is TRNR’s acquisition expected to close?


The acquisition is expected to close as early as the first quarter of 2025.


How will TRNR pay for the acquisition?


The transaction will be structured as 100% equity consideration, meaning it will be paid entirely in TRNR shares.


How many acquisitions has TRNR made in the past year?


This would be TRNR’s second acquisition within 12 months.


Will the acquisition be accretive to TRNR’s financial results?


Yes, the acquisition is expected to be accretive to TRNR’s financial results.





Related Topics:
Continue Reading