Shares of Irvine-based Xponential Fitness (NYSE: XPOF) jumped nearly 20% during midday trading on Friday after Bloomberg reported that Fund 1 Investments, the company’s third-largest shareholder, is looking to take Xponential private.
Fund 1, a subsidiary of Puerto Rico-based equity firm Pleasant Lake Partners LLC, purchased 4.17 million shares for approximately $25.9million in August. The next month, Xponential reached an agreement with Fund 1 that capped its total stake at 19.9%.
The firm, with a 9.9% stake in Xponential, is now looking to bid between $5.61 to $7.00 per share in cash to acquire the fitness studio franchisor, according to people familiar with the matter. No formal offer has been announced.
The stock was around $4.44 per share during midday trading with a market cap of $221 million.
