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YogaWorks works out IPO details
Posted on Thursday, 10 August 2017 14:11
YogaWorks is setting up an initial public offering (IPO) on Nasdaq potentially worth as much as USD 80.50 million to pay down debt and finance potential acquisitions.
The Californian studio operator claims to be one of the largest and fastest growing providers of yoga instruction in the US, with almost 3.00 million student visits in 2016 and 50 company-owned exercise rooms.
It launched its business in 1987 and has since expanded its footprint to six geographically dispersed US markets, namely Los Angeles, Orange County in California, New York City, northern California, Boston and Baltimore/Washington DC.
Along with a teacher training programme, YogaWorks also operates an Internet-based digital media service called MyYogaWorks.com.
This is an on-demand subscription video library of over 1,000 classes that allows students to practice anytime, anywhere and it streamed almost 700,000 classes to over 18,000 users in more than 145 countries in 2016.
As of 31st December 2016, YogaWorks had 49 studios, reflecting a compound annual growth rate of 19.5 per cent from 24 at 31st December 2012 (primarily related to the acquisition of 17 sites in 2015).
While the company has not officially signed any deals for new locations, it has entered into letters of intent or are in late-stage talks to pick up a further 20 for an aggregate cost in cash of USD 7.80 million and USD 9.40 million, including earnout payments.
Great Hill Partners currently owns YogaWorks after buying the chain in July 2014 for USD 45.60 million in cash and intends to help bankroll the acquisition plans by subscribing for USD 15.00 million-worth of shares offered in the IPO.
The listing of 7.30 million stocks at between USD 5.50 and USD 6.50 should dilute the buyout firm’s 99.9 per cent stake to 54.9 per cent, if all goes according to plan.
YogaWorks is also providing underwriters, which include Cowen, Stephens, Guggenheim Securities, Roth Capital and Imperial Capital, an overallotment for an additional 1.10 million shares.
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