Anne Mahlum, founder of Solidcore, is selling all of her shares of the company to Kohlberg & Company for an undisclosed amount, and she is sharing some of the proceeds with eligible employees, the company announced on April 19.
Over the years, Mahlum had raised capital from private equity firms Peterson Partners, Kohlberg & Company, and VMG Partners, who are now the majority owners in the company, which offers a high-intensity, low-impact full-body workout on a Pilates-inspired reformer.
Bryan Myers, who Mahlum promoted to CEO in April 2021, will remain in his position as part of the transaction. Mahlum had been serving as executive chairwoman for the past two years. The company had 78 studios in March 2020 prior to temporary shutdowns due to COVID-19. Today, the company has 100 studios in 24 states, she said.
"Anne has been a formidable business leader, partner and inspiration for our entire team," Myers said in the announcement. "We are all stronger versions of ourselves thanks to Anne's vision and the investors who continue to believe in the strength of Solidcore's business model. I feel privileged to continue to lead this team as we tackle this next chapter of growth and expansion."
With the investment money from Kohlberg & Company, Solidcore plans to open about 25 studios in 2023 and more than 250 studios globally in the next three to five years, Myers said.
For Mahlum, the offer to sell was just too good to pass.
“My job as Solidcore’s founder was to ensure I built something with an incredible foundation that would thrive without me at the helm,” she told Club Industry. “When your business is reliant on you, you decrease its value. I promoted Bryan Myers to CEO two years ago as part of my succession planning, and he is doing an incredible job. I know he and the team will continue to run the company with honor and integrity and stay true to our mission.”
Some of the proceeds of the sale will be placed in an incentive pool created in 2018 to be shared with 141 full-time employees who have been with the company for at least a year before the transaction, Mahlum said.
"Solidcore's success is far from just my own, and it wouldn't be where it is today without a lot of people's commitment," she said. "Sharing some of the financial upside with my team is just the right thing to do.”
Mahlum will focus her time writing a book, putting out her podcast “How to with Anne Mahlum,” and doing some investing and consulting, she told Club Industry.
She also is building a new fitness and wellness brand, Ambition, for which she announced in October she had raised $5 million. The first location opened in Brooklyn Heights, New York, in March. Two more locations will open this June in Manhattan, she said.
Several former members of Solidcore are joining Mahlum at Ambition, including Jo Gomez, who had been Solidcore’s director of training and will be Ambition’s head of product. Meagan Robar, who was senior manager of client experience at Solidcore from 2017-2022, will be Ambition's head of experience. Other members of the executive team are Jayson Siano, founder and CEO of Sabre Real Estate, who is Ambition’s lead development advisor, and Stephanie Finigan, who serves as chief of staff.
Mahlum, who in 2007 also founded Back on My Feet, a nonprofit dedicated to getting homeless people running so they can build confidence and make change that results in employment and independent living, will continue to be informally involved with Solidcore as the founder, she said.
“But it was time for me to move on and focus on other areas of my life,” she added. “The company is in great hands, and the team knows they can always call me if they need me.”