News

LNK Partners Makes Minority Growth Capital Investment in Beachbody to Accelerate Expansion of Leading Creator of Fitness and Weight-Loss Solutions

December 11, 2012

LNK Partners, a private equity firm focused on investing in the consumer/retail sector, announced today that it has made a minority growth capital investment in Beachbody, LLC, a leading marketer of health and fitness programs and products. The size of LNK’s investment and other terms were not disclosed.

Beachbody has grown rapidly over the past 14 years by marketing an expanding portfolio of health and fitness programs and products, such as P90X®, INSANITY®, Shakeology®, Ultimate Reset™ and 10-Minute Trainer®, through direct response television, e-commerce, and a direct sales network of coaches who also provide guidance and support to customers.

LNK’s investment in Beachbody is expected to enable the company to further accelerate its expansion. In addition to providing capital, two of LNK’s partners will join Beachbody’s Board of Directors and share their extensive experience building great consumer brands and businesses. LNK’s partners have operated, invested in, or served on the boards of such leading consumer companies as Quaker Oats, Gatorade, Pepsi, Life Time Fitness, PVH, Levi Strauss, Panera Bread, and Staples.

Carl Daikeler, Beachbody’s Co-Founder and CEO, said: “We are thrilled to be partnering with LNK. LNK has a stellar reputation and track record of having the highest integrity, being great to work with, and providing tremendous value to companies like ours who are in the process of building great brands and businesses.”

David Landau, Co-Founder and Partner of LNK, said: “We are honored and excited to be partnering with the Beachbody management team. They are terrific people who are committed to the mission of promoting health and fitness and fighting obesity. By delivering a great consumer value proposition through programs and products that really work, the Beachbody team has achieved outstanding growth over the company’s 14-year history.”

Phil Marineau, Partner of LNK and former President of the Quaker Oats Co., said: “Years of results have shown that Beachbody programs can effectively enable users to change their behavior, so they can lose weight and lead healthier lifestyles. Considering that about two-thirds of adults are overweight or obese in the U.S., there is a great need for improving not only individual lives, but the health of our nation overall.” Mr. Marineau serves on the board of Kaiser Foundation Hospitals and Health Plan and has been named to a committee of the Institute of Medicine, the health arm of the National Academy of Science, that is tasked with accelerating progress in obesity prevention.

Kayvan Heravi, Managing Director of LNK, said: “Beachbody develops, markets and supports programs and products in a way that motivates consumers to buy them, and to actually use them. The company leverages television, e-commerce, social media and network marketing in a unique and very successful manner.”

LNK’s investment advisor was Robert W. Baird & Co., and its legal counsel was Kirkland & Ellis LLP.

Beachbody’s investment advisor was Houlihan Lokey, and its legal counsel was Cozen O’Connor.

About Beachbody®, LLC
Founded in 1998, Beachbody, LLC is the creator of the nation’s most popular fitness and weight- loss solutions, including P90X®, Insanity®, Brazil Butt Lift®, 10-Minute Trainer®, and Les Mills Pump, and operates Beachbody.com and TeamBeachbody.com. Beachbody® programs combine challenging DVD-based workouts with easy-to-follow diet guidelines, nutritional supplements (including its breakthrough superfood shake called Shakeology®, a.k.a. “The Healthiest Meal of the Day”), an unparalleled customer service and peer-support system. TeamBeachbody.com includes a network of thousands of independent “Coach” distributors, a dynamic online support and fitness community, and thousands of trainers who are certified to apply Beachbody programming in the gym environment. The company’s expansion into the beauty category with Derm Exclusive® represents its commitment to providing its loyal customers with a comprehensive catalog of healthy alternatives. Beachbody is committed to helping people achieve their goals and enjoy healthy, fulfilling lives.

About LNK Partners
LNK Partners is a private equity firm focused on backing strong management teams who are building outstanding consumer and retail businesses. LNK’s current portfolio includes its investment in PVH’s acquisition of Tommy Hilfiger, Au Bon Pain, and Natural Food Holdings (Niman Ranch).  LNK’s partners have extensive experience successfully investing in, operating, or serving on the boards of many leading consumer and retail businesses, including Staples, PVH, Quaker Oats, Pepsi, Gatorade, Panera Bread, Life Time Fitness, Calvin Klein and Levi Strauss.

LNK also is distinguished by the high degree of flexibility in the type, structure and size of its investments, and its willingness to be a minority or majority shareholder.  LNK invests in a broad range of investment types, including growth capital, buyouts and recapitalizations.  LNK typically invests up to $150 million per transaction.