Echelon Raises $65 Million, Furthering Goal to Put Innovative Connected Fitness Within Reach for More Consumers
Investment by Goldman Sachs Growth and North Castle Partners
CHATTANOOGA, Tenn., Dec. 28, 2020 /PRNewswire/ -- Echelon Fitness, the innovative connected fitness brand, has completed a $65 million financing led by Goldman Sachs Growth, along with participation from existing investor, North Castle Partners; Piper Sandler acted as exclusive financial advisor to Echelon Fitness, all helmed by the dynamic serial entrepreneur Lou Lentine.
Echelon is dedicated to innovation that makes at-home, connected fitness more accessible. It offers a line of connected products – bikes, rowers, fitness mirrors, treadmill – and an app experience that allows its members to participate in both live and on-demand fitness classes. Echelon's products are available online as well as through its retail partners, including Walmart, Dick's Sporting Goods, Costco and Amazon. Coupled with its range of product offerings at various prices, Echelon is able to reach a broader customer base and more significant number of households than competitors in the industry.
"Since our inception we have seen astounding growth in member community, retail partners and product offerings," says Lou Lentine, President and CEO of Echelon Fitness. "We are a connected fitness brand dedicated to changing the category through smart innovation at affordable prices, and with an investment from Goldman Sachs, we can propel our business even further."
In 2019, North Castle Partners, a top private equity firm that works with businesses promoting healthy, active and sustainable living, partnered with Echelon, bringing investment capital and decades of experience in the fitness and health industry. The company's extensive portfolio of prior and current companies includes recognizable and established brands such as Equinox, Barry's, SmartyPants Vitamins, Full Swing Golf, Octane Fitness, Atkins, Naked Juice and more.
"North Castle was excited by the opportunity at Echelon to offer a great product at competitive prices before the global pandemic set-in. We have experienced explosive growth and we are very excited to have Goldman Sachs invest in the business alongside us. We have complementary experience and I'm looking forward to working with the Goldman team." Jon Canarick, Managing Partner of North Castle Partners.
"We are incredibly impressed by what Echelon Fitness was able to accomplish with a very small amount of capital raised to date," said Stephen Kerns, a member of Goldman Sachs' growth equity platform, GS Growth, "and we are excited about their omnichannel and multi-product offering that enables a broader reach to retailers and consumers alike."
Since 2017, Echelon Fitness has brought to market over a dozen innovative connected products, including their fitness apps, Echelon United Membership and Fit App. Their portfolio includes Echelon connected bikes, rowers, fitness mirrors and a treadmill, as well as limited edition products for retail partners like the Echelon Connect Sport Indoor Cycling Exercise Bike. Echelon produces over 30 live classes daily and offers a library of nearly 5,000 on-demand, led by their team of Echelon trainers streamed to their rapidly growing community of over 100,000 users. Echelon has studios in Chattanooga, TN and Miami, FL with a full schedule of classes.
Echelon has met an accelerated demand curve due to the COVID-19 pandemic with "ready to ship" guarantees on products sitewide.
ABOUT ECHELON FITNESS
Echelon Fitness has been revolutionizing at-home connected fitness since debuting its first Connect Bike in 2017. What began as a mission to make healthy living attainable and accessible to all evolved into a line of innovative fitness solutions—as well as a thriving community. Ranging from sophisticated indoor cycling bikes, to touch-screen fitness mirrors and more, every product boasts thoughtful design and state-of-the-art technology, enabling people to exercise how they want, when they want and with who they want. By leveraging The Echelon Fit App and United Membership, members gain access to a variety of live and on-demand classes led by down-to-earth fitness instructors. Members can also use the app to track their performance against Echelon's live leaderboard and overall progress, all while enjoying some healthy competition. For more information, visit https://echelonfit.com/. Echelon is a truly global connected fitness company with presence in Canada, Mexico, Colombia, UK, Germany, France, Iceland and Australia.
ABOUT GOLDMAN SACHS GROWTH
Founded in 1869, The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm. Goldman Sachs Merchant Banking Division (MBD) is the primary center for the firm's long-term principal investing activity. As part of MBD, Goldman Sachs Growth is the dedicated growth equity team within Goldman Sachs, with over 25 years of investing history, over $8 billion of assets under management, and 9 offices globally.
ABOUT NORTH CASTLE PARTNERS
North Castle Partners is a leading private equity firm focused on investments in consumer driven product and service businesses that promote healthy, active, and sustainable living. North Castle is a hands-on, value-added investor in high-growth, middle-market companies in the (i) fitness, recreation & sports, (ii) nutrition sectors, (iii) consumer health, (iv) beauty & personal care, (v) home & leisure, among others. North Castle partners with management to bring a wide range of strategic and operational capabilities to build world-class companies by unlocking the exponential power of full potential partnerships. North Castle is headquartered in Greenwich, CT. For more information, visit www.northcastlepartners.com.
ABOUT PIPER SANDLER
Piper Sandler is a leading investment bank driven to help clients Realize the Power of Partnership®. Through a distinct combination of candid counsel, focused expertise and empowered employees, we deliver insight and impact to each and every relationship. Our proven advisory teams combine deep product and sector expertise with ready access to global capital. Founded in 1895, the firm is headquartered in Minneapolis with offices across the United States and in London, Aberdeen and Hong Kong. Learn more at PiperSandler.com
SOURCE Echelon Fit
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