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Bain Capital Double Impact Announces First Two Investments

07.18.17

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Bain Capital Double Impact Announces First Two Investments Bain Capital Double Impact Announces First Two Investments

BOSTON, MA, July 7th, 2017 – Bain Capital Double Impact, the impact investing strategy of Bain Capital, today announced the completion of its first two investments in mission-driven companies, Living Earth and Impact Fitness. Living Earth is the largest commercial recycler of organic landscaping materials in Texas, diverting waste from landfills that would otherwise release harmful greenhouse gasses. Impact Fitness is a leading Planet Fitness franchisee pursuing a mission-driven approach to promoting healthy lifestyles in underserved communities. Financial terms of the private investments were not disclosed.

“We are pleased to have completed our first two investments and look forward to employing our resources and operational capabilities to help these innovative companies and their management teams achieve greater scale while maximizing their mission potential,” said Deval Patrick, Managing Director at Bain Capital Double Impact. “We believe there are attractive opportunities to expand Living Earth’s reach given their approach to reducing landfill waste and doing so in a more energy and resource efficient way. As a leading member of the Planet Fitness system, Impact Fitness has a deep and authentic commitment to promoting wellness in underserved communities, and we can help improve access to health meaningfully.”

Living Earth Reduces Landfill Waste

Founded in 1985 in Houston, Texas and headquartered in Dallas, Living Earth is the largest recycler of green material in Texas. Living Earth receives organic waste materials that would ordinarily go to landfills and processes it into high quality compost, mulch and soil products, which is sold to landscape contractors, nurseries, retailers and homeowners. Organic waste materials that are landfilled release methane, a harmful greenhouse gas. By recycling these materials, Living Earth preserves landfill space and contributes to reduced greenhouse gas emissions.

“Our Living Earth management team is very excited to launch this new partnership, and we believe Bain Capital Double Impact's financial and operational strength will help us rapidly grow our business,” said Mark Rose, President and CEO of Living Earth. “This investment will support our accelerated growth and allows our upcoming entry into new markets around the US..” SJF Ventures, which invests in high-growth companies creating a healthier, smarter and cleaner future, also participated in the investment.

Impact Fitness Drives Access and Wellness

Impact Fitness addresses some of the key barriers to health and wellness by providing access to health clubs at affordable prices and locating those clubs in underserved communities. Impact Fitness also provides members with an inclusive, non-intimidating environment. The company operates 13 health clubs in Michigan and Indiana, two states that are among the lowest ranked in the country on key health indicators, such as blood pressure, obesity, and cholesterol. Impact Fitness is a top franchisee in the Planet Fitness system, consistently ranked among the best operators, and it was named the top performing franchisee on “Brand Excellence Rating” out of more than 200 franchisees in 2016.

"This investment will enable Impact Fitness to grow faster and identify even more first-time gym users in new markets while creating job opportunities in communities that need them,” said Chris Klebba, Founder and CEO of Impact Fitness. “I am very proud of what our team has accomplished in becoming a top performing Planet Fitness franchisee. We are thrilled to welcome Bain Capital Double Impact as a valuable partner with the expertise, resources and aligned mission to help us further grow our business and amplify our positive impact on the health of our members and the communities we serve.” Bridges Fund Management – a specialist fund manager dedicated to sustainable and impact investing, which has a successful history of investing in low-cost gyms, including The Gym Group and Viva Gym -- also participated in the investment.

Bain Capital Double Impact has a unique strategy for driving meaningful, measurable impact in its investments. Using Bain Capital’s proven value-added approach, Double Impact utilizes the firm’s operational capabilities to help mission-oriented companies achieve scalability, and successful companies to maximize mission potential. This strategy is designed to deliver both competitive financial returns and measurable social and environmental good. Bain Capital has a long history of successful investments in mission-oriented companies, including TOMS, Sundial Brands, Bright Horizons Family Solutions Inc., Beacon Health Systems, MinuteClinic Inc., and EcoSense Lighting.

Committed financing for Living Earth is being provided by NXT Capital and for Impact Fitness by Twin Brook Capital Partners. Goodwin Procter, AlphaSights and PwC were advisors to both transactions.

About Living Earth

Living Earth (www.livingearth.net) is the largest recycler of green material in Texas. It is also the largest commercial manufacturer and provider of mulch, compost and other landscaping materials in Texas. It operates 25 locations, primarily in Dallas, Houston, Fort Worth and east Texas, selling to commercial landscaping contractors, nurseries and other retailers. Living Earth's product offering includes a variety of mulches, composts, blended soils, soil amendments and convenience items for its customers such as stone, gravel and river rock. The Company's packaged products are sold under the "Living Earth(TM)" and "Earth's Finest(R)" trade names.

About Impact Fitness and Planet Fitness

Impact Fitness is a leading Planet Fitness franchisee, operating 13 fitness clubs across Michigan and Indiana. Founded in 1992, Planet Fitness is one of the largest and fastest-growing franchisors and operators of fitness centers in the United States by number of members and locations. As of September 30, 2016, Planet Fitness had more than 8.7 million members and more than 1,200 locations in 47 states, the District of Columbia, Puerto Rico, Canada and the Dominican Republic. The Company's mission is to enhance people's lives by providing a high-quality fitness experience in a welcoming, non-intimidating environment, which we call the Judgment Free Zone®. More than 90% of Planet Fitness locations are owned and operated by independent business men and women.

About Bain Capital Double Impact

Bain Capital Double Impact (www.baincapitaldoubleimpact.com) is an affiliate of Bain Capital, a leading global private investment firm. Bain Capital Double Impact utilizes Bain Capital’s proven, deep diligence, value-added approach to build great companies that deliver both competitive financial returns and meaningful, measurable social and environmental good. Bain Capital Double Impact focuses on sustainability, health & wellness, and community building to create long-term value and meaningful impact at scale. Its goal is to enable the next phase of financial and impact growth for our partner companies, which are solving critical social problems, and doing so profitably. We believe that our value-added approach, experienced team, and broad platform expertise will help our partner companies to thrive.

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