JACS Development, an operator of eight Planet Fitness clubs in southeast Michigan since 2008 under an Area Development Agreement (ADA), has been recapitalized by Impact Fitness, a portfolio company of Morgan Stanley Capital Partners. The McLean Group’s Meg Montague and Burt Yarkin of its franchising practice served as the exclusive advisor to JACS. Terms of the transaction were not disclosed.

Meg Montague, Senior Managing Director of The McLean Group, said, “JACS Development sought a strategic partner that shared both its vision on growth and its core values. Impact Fitness checked not only these boxes but also offered the added benefit of geographic proximity. Bringing these two businesses together holds the potential for a great partnership going forward.”

“Impact Fitness’ year-over-year growth, strong financial backing, and commitment to Planet Fitness’ core values were very persuasive factors in our decision to partner with them,” explained Jim Matthew, Co-Founder of JACS Development. “The team consistently ranks among the best Planet Fitness operators.”

Adam Willaeys, CEO of Impact Fitness, added, “This partnership supports our firm’s positive growth trajectory in the high-value, low-cost, Judgement Free fitness space. Adding eight contiguous new clubs and additional growth potential within the ADA also offers our members more options when it comes to well-run, well-appointed facilities that can help them achieve their fitness goals.”

“The McLean Group’s commitment to our engagement was unparalleled,” said Dennis Backos, Co-Founder of JACS Development. “During this process The McLean Group team worked diligently to achieve the results we all thought were possible. Their thoughtful approach and laser focus on achieving our objectives enabled us to successfully complete the transaction efficiently.”

Chris Klebba founded Impact Fitness, headquartered in Brighton, Michigan, in 2006 with the opening of its first Planet Fitness club in the Greater Detroit market. Since then, the company has grown to include 29 clubs across Michigan, Indiana, British Columbia and Ontario.

Founded in 1992, Planet Fitness (NYSE: PLNT) is one of the largest and fastest-growing franchisors and operators of fitness centers in the United States by number of members (14 million+) and locations (1,800+).

Morgan Stanley Capital Partners, the middle-market focused private equity business of Morgan Stanley Investment Management, is a leading middle-market private equity platform that has invested capital in a broad spectrum of industries for over three decades. Morgan Stanley Capital Partners focuses on privately negotiated equity and equity-related investments primarily in North America and seeks to create value in portfolio companies primarily through operational improvement. For further information about Morgan Stanley Capital Partners, please visit www.morganstanley.com/im/capitalpartners.

ABOUT THE MCLEAN GROUP

The McLean Group’s franchising practice provides a full range of M&A advisory and capital-raising services to franchisors and multi-unit franchisees.

The McLean Group is an employee-owned investment bank that provides objective strategic and financial advice on mergers and acquisitions and business valuations. Our investment banking advisory and valuation services are built on comprehensive industry knowledge, extensive transaction experience, senior-level attention to every client engagement and a real-time understanding of industry-specific value drivers. By partnering with clients and providing strategic advice throughout every phase of a company’s development, The McLean Group is uniquely positioned to support our clients’ long-term success.