Xponential Fitness, Inc. announced the completion of the divestiture of its CycleBar and Rumble brands to Extraordinary Brands, LLC, for a total consideration of $7 million. This strategic move aligns with the company's stated goal to focus time and capital on brands that drive current and long-term profitability.
CEO Mark King emphasized that divesting these brands is consistent with the company's 'franchisee-first' approach, aiming to enhance operations, growth, and member experience. The company will collaborate with Extraordinary Brands to ensure a seamless transition for franchisees.
This divestiture is part of Xponential's broader portfolio optimization strategy, following previous divestitures of Stride and Row House, and the wind-down of AKT operations. The leaner portfolio is expected to lead to improved overall health, reduced closure rates, and increased average unit volumes for the remaining core brands.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.