Berkshire Partners together with CEO Eric Roza announced the purchase of CrossFit for an undisclosed amount.
Former CEO and founder Greg Glassman will not hold any shares in the company after the sale.
The CrossFit transaction process is expected to be completed in the coming weeks, subject to government approvals.
Boston-based investment firm Berkshire Partners, along with CrossFit’s new CEO, Eric Roza, announced the purchase of the global gym brand CrossFit from former CEO and founder Greg Glassman for an undisclosed amount.
Today we signed the final agreement to purchase 100% of CrossFit. Now the real work begins! pic.twitter.com/0ZT9gQbdpJ
– Eric Roza (@RozaEric) July 24, 2020
“After a month of hard work by several dozen people on our respective deal teams, I am pleased to announce that we have signed the final agreement to purchase 100% of CrossFit from Greg Glassman. I will be assisted in the acquisition of CrossFit by Berkshire Partners, a Boston-based investment firm,” the company stated in an announcement.
A costly mistake
On June 6, Greg Glassman stepped down as CEO of CrossFit and retired. His resignation came just three days after a pair of offensive tweets about the coronavirus and the death of George Floyd that sparked nationwide outrage. The controversial tweets immediately cost the company money in the form of loss of key partnerships, sponsors and the business of affiliated gyms.
Gregg Glassman will not hold any shares in the company upon completion of the sale, whereas 1% of CrossFit’s shares will be placed in a non-voting trust for Maggie Glassman and her children.
Eye candy for the investors: Eric Roza
Eric Roza’s track record of fundraising and exit is still an eye-catcher. The biggest downer could be Datalogix, a Westminster-based company that leads the market in integrating database marketing and digital media. In January 2015, CEO Eric succeeded in selling Datalogix to Oracle Corporation (NYSE: ORCL) for an estimated amount of more than $1.2 billion.
Eric remains co-founder of the affiliated CrossFit Sanitas gym in Colorado and chairman of TrueCoach, a leading SaaS personal training platform.
Since its founding over 30 years ago, Berkshire Partners has launched nine private equity funds with total capital in excess of $16 billion and manages a marketable securities fund, Stockbridge Investors, with capital in excess of $3 billion. “We are excited to work with Eric, his management team and the entire CrossFit community,” said Marni Payne, Managing Director of Berkshire Partners.
The CrossFit transaction process is expected to be completed in the coming weeks, subject to government approval.