Gymshark founder in talks to buy back General Atlantic stake
Gymshark founder and chief executive Ben Francis is in talks to buy back part of the stake he sold to General Atlantic, seeking to increase his control of the UK fitness apparel business.
Ben Francis, founder and CEO of Gymshark, is reportedly in discussions to repurchase a portion of the stake previously sold to General Atlantic. This move is aimed at increasing his control over the UK fitness apparel business. Discussions are understood to encompass the potential valuation of the transaction and the extent of the stake to be repurchased, with Francis concurrently engaging with banks regarding financing options. This information originates from a report by the Financial Times.
General Atlantic initially invested £200 million in Gymshark in 2020. This investment secured a 21% stake in the company and valued Gymshark at £1 billion, establishing it as one of the UK's best-known "unicorns." Following this transaction, Francis, who initiated Gymshark from his parents' garage at age 19, maintained a majority ownership position in the company.
Francis currently owns about 70% of Gymshark. Indications are that he is more inclined to buy back a segment of General Atlantic's holdings rather than the entirety of their stake. General Atlantic presently has a representative on Gymshark's board of directors, reflecting its current involvement in the company's governance.
The reported buy-back discussions coincide with a more challenging period for Gymshark, which has seen growth slow amid tougher competition and weaker consumer spending. The company restructured last year, cutting hundreds of roles as it sought to manage near-term pressures and improve its operations in continental Europe.
In efforts to build brand awareness, Gymshark has also opened a small number of physical stores, including a flagship outlet on London’s Regent Street. The company has also previously considered an IPO.