SoulCycle owner Equinox Holdings is mulling a SPAC to go public, new report says

SoulCycle LA
Before the fall: A typically exuberant SoulCycle class swings their sweat towels in March of 2019 in Los Angeles.


SoulCycle majority owner Equinox Holdings is mulling a public offering via a merger with a SPAC, according to a report from Sportico.

The luxury gym and fitness brand is said to be meeting with as many as 12 blank-check firms that are in search of a company to acquire as a flood of SPACs hit the market, according to the report. The company has also met with private equity investors to explore its alternatives.

If a deal does materialize, Equinox could fetch a valuation of $9 billion or more as investors search for reopening plays that are poised to benefit from a reopening of the economy and a diminished threat from COVID-19.

“Everyone’s just trying to figure out what to do. There’s a recovery play to be had, which everyone is evaluating,” said a private equity investor that held talks with Equinox, according to Sportico.

Equinox operates more than 100 full-service fitness clubs, a luxury hotel in New York City, a discount gym named Blink, and a majority stake in SoulCycle, which recently launched its own at-home exercise bike to compete with Peloton.

Over the past year, more than 500 SPACs have been formed and are in search of a deal before the 2-year expiration forces a liquidation of the investment vehicle. According to Dealogic, currently-listed SPACs have more than $1 trillion in purchasing power.

The names of the SPACs that are in talks with Equinox were not disclosed, according to Sportico, which highlighted that there are at least 24 sports-related SPACs that could justify a deal with Equinox.

Read the original article on Business Insider