Kayla Itsines, Tobi Pearce join forces to take back ownership of Sweat
Kayla Itsines and Tobi Pearce have taken back control of the Sweat digital fitness empire, less than three years after their $200m sale to a US company.
Business
Don't miss out on the headlines from Business. Followed categories will be added to My News.
Adelaide entrepreneurs Kayla Itsines and Tobi Pearce have taken back control of the Sweat digital fitness empire they founded, less than three years after their $200m sale of the business to US fitness giant iFIT.
The former couple are back in business together, acquiring the brand from iFIT for an undisclosed sum.
As part of their acquisition, Itsines will continue in her role as co-founder and head trainer, while Pearce has also taken a stake in the business, and will provide advice to help shape the company’s long-term growth strategy.
iFIT acquired Sweat from its co-founders in 2021 in a $US150m ($A228m) deal, but the brand has struggle to maintain its momentum under foreign ownership.
The US company posted an $80m write-down to the value of the Sweat business in its first full year of ownership, when traditional gyms were re-emerging following Covid-19 lockdowns that forced people to work out at home.
In a statement on Tuesday, Itsines said that while selling Sweat in 2021 was the right decision at the time, the business had since “come full circle”. And with iFIT focusing on its core business of fitness hardware products, there was an opportunity to take back ownership of Sweat, with a passion and commitment to growing the brand from Adelaide.
“I am thrilled to be back as an owner of Sweat, a platform that has meant so much to me and to the millions of women it serves,” she said.
“The decision to regain ownership is about ensuring the best future for Sweat. We have always been a platform built for women, by women, providing a secure and encouraging space for them to share their transformation journeys. Our commitment to this community remains unwavering.”
Sweat employed close to 100 staff in Adelaide at its peak before the sale to iFIT, but a series of lay-offs last year were blamed on “changes in customer demand and the effects of gyms returning to pre-pandemic operating levels”.
Sweat chief executive Adam Koch will remain in his role as part of the ownership transition.
Pearce and Itsines, both personal trainers, shot to fame after forming the Bikini Body Guide fitness program in 2015. It evolved into Sweat, which became one of the world’s largest digital fitness training platforms for women.
Itsines and Pearce split as a couple in 2020, but remained business partners until the sale to iFIT the following year. Itsines has remained the face of the brand, while Pearce left his role as chief executive at the start of 2022 to pursue other interests. He is currently chief executive at EzLicence – an online driving instructor marketplace he co-founded in 2016.
Itsines will marry partner Jae Woodroffe next month, while Pearce announced his engagement to Rachel Dillon – a three-time World Beauty Fitness and Fashion bikini champion from Townsville – in September.
Last month the Supreme Court dismissed an injunction bid by Sweat’s owner, the Bikini Body Training Company, to block “fitspo” star and former Sweat contractor Cass Olholm from launching a rival app.
More Coverage
‘Quiet faith’ that makes King a market ruler
From his Bishop father to $50bn fund aspirations, Phil King has become the man many in the stockmarkets want to know more about, and they all want to emulate his financial success.
Shares retreat from record as commodities weigh on bourse
Tightening supplies of raw materials may magnify a rise in prices if China’s stimulus measures manage to lift growth in the world’s No.2 economy and biggest consumer of most commodities.