The board of the Club Pilates and Pure Barre parent has hired Jefferies to evaluate strategic alternatives, including a potential sale or merger<\/p>\n
Xponential Fitness\u2019 board says it\u2019s exploring a sale, an announcement that follows weeks of shareholder pressure.<\/p>\n
In March, Houston-based Voss Capital \u2014 the company\u2019s biggest shareholder, controlling 19.3% of outstanding shares \u2014 issued an open letter urging the board to hire independent financial advisors and explore a full sale.\u00a0<\/a><\/p>\n Kanen Wealth Management, which owns roughly 4% of Xponential\u2019s shares, followed with its own public demand on April 1.<\/p>\n The boutique fitness franchisor operates five brands within its portfolio, Club Pilates, Pure Barre, YogaSix, BFT and StretchLab, down from 11 brands around two years ago. <\/p>\n Xponential has tapped Jefferies LLC as its financial advisor for the review, during which the board\u2019s independent directors will evaluate a range of potential alternatives, including a sale, merger or other strategic or financial transaction, the company said.\u00a0<\/p>\n The board has also appointed Nicole Parent Haughey, a former Fortune 50 executive and founder of Halsey Loganberry Growth Advisors, as an independent director. Jair Clarke, Chelsea A. Grayson and Bruce Haase have stepped down from the board.<\/p>\n The review comes as Xponential continues to navigate a turbulent stretch. Earlier this year, the boutique fitness franchisor agreed to pay $17 million to settle a Federal Trade Commission investigation and finalized a separate $22.75 million payout to more than 500 current and former franchisees<\/a>.<\/p>\n