Fund 1 Investments LLC, the third-largest shareholder in Xponential Fitness Inc., is pushing for a take-private transaction and plans to bid for the company itself. The Rincon, Puerto Rico-based investor disclosed in a Friday filing it is prepared to offer $5.61 to $7.00 per share in cash, confirming an earlier Bloomberg report. The top of the range represents an 87% premium to Thursday's $3.74 close. Shares surged 19% to $4.46 Friday, valuing the Irvine, California-based owner of Club Pilates and Pure Barre at about $188.3 million.
Fund 1 argues that as a private company, Xponential could focus on rebuilding studio-level demand, generating free cash flow and strengthening its balance sheet without quarterly reporting pressure. The firm cited its recent take-privates of L'Occitane (October 2024) and Tile Shop Holdings (December 2025) as precedents. Fund 1 holds economic exposure of nearly 20% and is open to other shareholders participating.
Xponential, which operates one of the largest U.S. boutique fitness chains spanning pilates, barre, stretching, strength training and yoga, carries over $500 million in debt. Shares have fallen more than 40% year-over-year. The company disclosed earlier this year it was reviewing strategic alternatives with Jefferies Financial Group Inc. and enacted a poison pill defense last month. Activist shareholder Voss Capital is the largest investor.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing