Former Topgolf CEO Tom Leverton will lead Purpose Brands, a holding company that includes Orangetheory Fitness, Anytime Fitness and more
The new company formed by the merger of Orangetheory Fitness and Anytime Fitness parent company Self Esteem Brands is officially named Purpose Brands, and the new CEO is former Topgolf CEO Tom Leverton.
Purpose Brands will be headquartered in Boca Raton, Florida, and Woodbury, Minnesota, according to an announcement Thursday. The holding includes boutique fitness giant Orangetheory and 24/7 gym franchise Anytime Fitness, as well as entities such as The Bar Method, Basecamp/Sumhiit Fitness and Washing the City.
Leverton, who most recently served as a partner at investment firm Pritzker Private Capital, will serve as the new company’s first CEO. Leverton is a former engineer who has served as CEO of Topgolf, Chuck and other brands. E Cheese’s parent companies are CEC Entertainment and Omniflight (a medical helicopter provider). Leverton will also serve on the Purpose Brands board of directors.
Leverton told Athletech News that he decided to join Purpose Brands because of the strength of its flagship Orangetheory and Anytime Fitness brands, as well as his desire to create positive change through fitness and wellness.
“My two formative experiences were in health care services. I was a biomedical engineer making neurovascular catheters and I was the CEO of a medical helicopter company,” Leverton told ATN. “In both roles, we do save lives. Purpose brands do save lives, and the lives we don’t save, we make better by improving health, well-being and self-esteem.”
Fitness industry giant
Purpose Brands follows the announcement of a merger of equals between Orangetheory and Self Esteem Brands in February. The deal marks one of the biggest consolidations in the fitness industry in recent years, with global giants such as Orangetheory and Anytime joining forces to create a fitness and wellness supercompany.
Purpose Brands currently operates more than 7,000 locations, including more than 1,500 orange theory studio and 5,000 Fitness anytime, Serving more than 6 million members worldwide and generating approximately $3.7 billion in revenue. Nearly half of them are located outside the United States, covering 50 countries and regions on seven continents.
The parties said that Roark Capital, a private equity firm that has previously invested in Orangetheory and Self Esteem Brands, will continue to support the combined company.
Orangetheory co-founder Dave Long and Self Esteem Brands co-founder Chuck Runyon told ATN they had been discussing joining forces for years and finally felt the time was right earlier this year. They chose Purpose Brands as the company name to recognize the important mission fitness and wellness brands play in improving people’s health.
“Going back to the earliest conversations Dave Long and I had, we’ve always had a very purpose-driven organization,” Runyon said. “We believe in the power of bringing better health to people around the world, and of course, we also support small business owners through franchising. That shared purpose originally brought us together and I think ultimately is what inspires our team as well Reasons to work hard every day.”
Runyon and Long will serve on Purpose Brands’ board of directors and will remain active in fitness industry circles, but Leverton will serve as CEO and be responsible for day-to-day operations.
“We selected Tom because he has a track record of being purpose-driven, growth-oriented and what I would call long-term stakeholder focused,” Runyon said. “Every company he’s worked for has gotten better since he left. We’re excited to see where he takes the company.”
What’s next for Purpose Brands?
Although their footprints are already large, Leverton believes Orangetheory and Anytime still have plenty of room to continue to expand in the U.S. and overseas in the coming years. Brands such as The Bar Method, Basecamp/Sumhiit Fitness and Washing the City are also likely to expand.
“There is a huge gap both domestically and internationally,” Leverton said. He pointed out that data shows that the global health market will be worth US$6.3 trillion in 2023. Expected to grow to $9 trillion by 2028.
In addition to driving more expansion, Orangetheory and Anytime Fitness franchise owners can expect enhanced support and new resources in data analytics, operations, marketing and even science, Leverton said.
“We will be the world’s largest health and wellness platform, with 7,000 locations, 50 countries, seven continents and more than 6 million members,” he said. “With this scale, we will be able to provide our franchisees with every tool possible so they can provide the best health and wellness experience to their members.”
These benefits may include enhanced collaboration between Orangetheory and Anytime Fitness from a technology perspective, although this has not yet been confirmed. Anytime made headlines last year when it became the first fitness brand to partner with Apple Fitness+, while Orangetheory is known for using heart rate tracking technology during workouts.
Long, who co-founded Orangetheory in 2010 and grew it into one of the largest franchise brands in the fitness industry as CEO, is excited about the next chapter under new leadership.
“Purpose Brands is full of entrepreneurial energy,” Long said. “The focus is on how we make our franchisees successful (because) ultimately, they make our members and customers more successful. That’s the thread through the whole thing, that’s our north star and that’s where our focus is.”
