ICON Health & Fitness announces new $200 million investment

ICON Health & Fitness, which is behind NordicTrack, ProForm, and Freemotion, has announced a new $200 million investment by L Catterton, the largest consumer-focused private equity firm, and is joined by existing investor Pamplona Capital Management.

Scott Watterson, founder, chairman, and CEO of ICON, had this to say about the new investment:

Health and fitness have never been more important to consumers globally, and we are seeing explosive growth across our subscription software and fitness equipment businesses. We saw this fast-growing demand going into 2020, and this has accelerated sharply as people’s desire to stay healthy has intensified.

We welcome L Catterton onboard at this incredibly exciting time in our company’s history. L Catterton has an exceptional history of success investing in consumer and fitness businesses. I look forward to working alongside Scott Dahnke and his team as we continue to accelerate growth across our various platforms and distribution channels.

ICON reaches the fitness industry’s largest total addressable market in North America, Europe and around the world. The vast and expanding global health and fitness market presents a powerful platform for continued growth.

This funding will further strengthen our leading position in connected fitness and deliver on our mission to help consumers of every demographic and fitness level pursue and achieve their health and fitness goals.

The company’s broad range of products across price points has democratized fitness, making it more accessible to everyone, everywhere. Their established and iconic brands such as NordicTrack and now increasingly iFit, with its significant subscriber growth, set ICON apart. We are excited to partner with Scott and his exceptional management team in this next phase of their exciting growth journey.

CTW’s Take

This investment is symbolic of the current trend in fitness, and it’s no surprise as ICON saw revenue exceeding $1 billion in the last 12 months (ending September 30, 2020). The iFit service has approximately 700,000 paid subscribers, so they are certainly a major player in this industry.