Topspin Partners LBO has acquired an equity interest in HCOA Fitness, an operator of fitness clubs and personal training services, from TG Capital which first invested in the company in October 2009.
“After evaluating many health and wellness opportunities in recent years, we are delighted to have found this outstanding company,” said Topspin Managing Director Leigh Randall. “HCOA’s management team and employees have impressed us since our early conversations, and we look forward to supporting them as the company continues to build upon its strong foundation as the leading fitness company in Puerto Rico.”
HCOA Fitness is an operator of fitness clubs and personal training services in Puerto Rico. The company’s co-ed family fitness centers are full-service and offer members a complete array of cardiovascular equipment, strength training machines, aerobic classes and other amenities. The company is headquartered in Miami (www.hcoafitness.com).
Topspin LBO makes control investments in profitable and established lower middle-market businesses. Sectors of interest include consumer products and services, business and information services, health and wellness, food and beverage, retail, and security. The firm is based near New York City in Roslyn Heights, NY (www.topspinlbo.com).
“Topspin’s acquisition of HCOA is very exciting for our team as it affords us a unique opportunity to further grow our brand and expand our market presence. Topspin’s strategic insight will play a key role in our quest to redefine fitness within the modern health club,” said Juan Ortega, CEO of HCOA.
TG Capital will remain as an equity holder and will be an active partner in the business. “We have enjoyed our association with HCOA over the past four years and are thrilled to partner with Topspin to support HCOA’s future growth,” said Johnathan Robertson, President and Managing Director of TG Capital Corp.
Topspin completed the acquisition of HCOA with debt financing from Brookside Mezzanine Partners, which also invested equity alongside Topspin in the transaction. Brookside provides subordinated debt and minority equity to small and mid-sized companies for buyouts, leveraged recapitalizations, acquisitions, dividends and growth capital. Target companies generally have revenues of at least $15 million and EBITDA of at least $3 million. Brookside manages $500 million through three mezzanine funds. The firm was founded in 2001 and has offices in Stamford, CT and Boston, MA (www.brooksidemezzanine.com).
TG Capital invests in established companies with strong market positions across a spectrum of industries. Generally, the firm focuses on companies at a pivotal point in their development when they are in need of either capital or management. TG Capital is based in Miami (www.tgcapitalcorp.com).
© 2014 PEPD • Private Equity’s Leading News Magazine • 1-9-14