Planet FitnessIt announced Tuesday that it will acquire Sunshine Fitness in an all-cash deal worth $800 million. Sunshine Fitness is an American operator of over 100 Planet Fitness clubs. 

According to a company press release, the transaction should close by the end of the first quarter 2022. Planet Fitness claims that this deal will increase Planet Fitness’ adjusted earnings by low-double-digit percentages in the current year.

According to Chief Executive Chris Rondeau, the purchase of Sunshine Fitness allows Planet Fitness diversify into more areas. Sunshine Fitness has locations throughout the Southeast including South Carolina, North Carolina, Florida.

Rondeau said, “Owning corporate store is an important component of our strategy because it gives me both relevancy as well as credibility when making decisions which impact the entire system.”

Planet Fitness will acquire more than 200 corporate gyms, representing about 10% to its entire portfolio after the transaction closes, he said.

Planet Fitness announced that its 2021 year ended with 15.2million members. That’s an increase by 1.7 million in 12 months. Planet Fitness opened 132 new locations in 2018, exceeding expectations. This brought its global total of 2,254 gyms to 1,257.

Planet Fitness plans to present to investors on Tuesday, at the ICR Conference. This conference is held virtually this year.

Planet Fitness shares rose by approximately 17% in 2021