Boutique fitness brand curator Xponential Fitness, Inc. (XPOF) recently revealed the acquisition of Australian fitness franchisor Body Fit Training (BFT) for $44 million. The acquisition allows Xponential to acquire all of the intellectual property of Body Fit Training.
Following the news, shares of the company rose marginally to close at $13.69 in yesterday’s trading session.
Notably, Xponential expects the buyout to be immediately accretive on an EBITDA margin basis.
Post the buyout, Xponential is likely to enter into a Master Franchise Agreement with BFT to assist its roughly 130 franchised studios across Australia, New Zealand, and Singapore, along with 150 Body Fit studios previously sold and contractually obligated to open across the Asia Pacific region within the next 12 months, the company said. Furthermore, Xponential will directly service Body Fit studios in the United States and Canada.
CEO of Xponential Fitness, Anthony Geisler, said, “Xponential has a proven history of seamlessly integrating brands into our platform. BFT expands our portfolio of boutique fitness offerings in a way that is highly complementary to our existing modalities. As with each of our current brands, we will leverage the Xponential Playbook to provide BFT robust franchisee support and access to best practices to generate synergies across our entire portfolio.” (See Top Smart Score Stocks on TipRanks)
Recently, Jefferies analyst Randal Konik reiterated a Buy rating on the stock with a price target of $18, which implies upside potential of 31.5% from current levels.
Consensus among analysts is a Strong Buy based on 8 unanimous Buys. The average Xponential Fitness price target of $16.69 implies upside potential of 21.9% from current levels.
Xponential Fitness scores an 8 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained 11.8% over the past year.