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New York | July 2009
$10mm Investment to fund growth of Meridian Sports Clubs
Praesidian Capital Investors, a leading provider of mezzanine capital for small and mid-sized companies, has invested $10 million of senior secured debt in Meridian Sports Clubs California, LLC.
Operating under the brand “Meridian’s Bodies in Motion”, Meridian operates 11 “upper middle market” health clubs in California and one in Hawaii. Meridian’s Bodies in Motion offers state of the art equipment, personal support and a social experience through a wide variety of group exercise programs, such as kickboxing, yoga, dance and cycling classes. The Company’s staff of trainers and instructors consists of Olympic athletes, world champions and current contenders in their respective sports.
“This is a business with a resilient and stable revenue base,” said Jason Drattell, Managing Partner at Praesidian. “We are very pleased to be working closely with this proven management team, which has consistently grown sales, both organically and through acquisitions, while effectively managing costs.”
“We are very proud of what Meridian has accomplished to date and also very excited about our future prospects,” said Chuck Grieve, chief executive officer of Meridian. “Praesidian understands our business and this gives me great confidence that they are the ideal partner to help us continue our growth.”
Duane Stullich, Managing Director of FocalPoint Partners, advisor to Meridian on the transaction, commented: “We take great pleasure in bringing talented management teams with good businesses together with knowledgeable and responsive investors offering both strategic and financial support. We believe this transaction positions Meridian for even greater success.”
About Praesidian Capital Investors
Praesidian Capital partners with small and mid-sized businesses, providing private mezzanine capital. Praesidian invests in established, historically profitable companies often in connection with a management/leveraged buyout, recapitalization or refinancing. Based in New York City, Praesidian manages over $400 million in committed capital. For more information, visit www.praesidian.com.
About Meridian Sports Clubs California, LLC
Meridian Sports Clubs California, LLC operates 11 “upper middle market” health clubs in California and one in Hawaii under the brand “Meridian’s Bodies in Motion”. Meridian’s Bodies in Motion focuses on personal support and providing a social experience to its members by focusing on a wide variety of group exercise programs, such as kickboxing, yoga, dance, and cycling classes. All clubs have multiple group exercise rooms, many of which have separately controlled atmospheres (i.e. temperature, lighting and sound). Many clubs have boxing/kickboxing facilities utilized during peak hours for professional exhibitions to create a unique and motivational “workout experience”. Meridian offers supplemental products and services in certain locations such as full-size spas, pool classes and programming, tennis, racquetball, and physical therapy, as well as babysitting and children’s programming services. For more information, visit www.bodiesinmotion.com.
Media Contact: Dan Jacobs
Broadgate Consultants LLC
Phone: 212 232 2227
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