Ladder, a nutritional company found by basketball icon LeBron James and actor Arnold Schwarzenegger, has been sold to technology fitness platform, Openfit, the companies told CNBC. James and Schwarzenegger founded Ladder 2018, aiming to create nutritional products for athletes to combat cramping while in action. The idea stemmed from James’ severe cramping in Game One of the National Basketball Association’s Finals series in 2014.
“After pushing my body to its limits season after season, I needed a different level of supplements that I could trust to complement my workouts and aid in the recovery process,” said James in a statement. “With Ladder, we achieved that. We were able to work with experts to create an incredible line of certified, high caliber supplements for all athletes, but we always recognized that is just one part of the process. “Now with the reach and resources of the Openfit platform, we’re excited about bringing this all together and creating a new level of training and nutrition that fits everyone’s individual needs,” James said. “It’s in the right hands,” added Schwarzenegger in an interview with CNBC on Tuesday. “It’s the right move to make.”
Openfit CEO Jon Congdon and an undisclosed group of investors purchased Ladder, buying shares from investors, including investment firm Main Street Advisors. Terms of the deal were not made available. In an interview with CNBC on Tuesday, Congdon said James and Schwarzenegger would stay on as minority shareholders and help with future promotional content. “We looking to grow the brand,” said Congdon, adding the company would integrate Ladder’s nutritional supplements in subscription offerings.
Openfit is a mobile application that monetizes private training and exercise classes through subscriptions. The packages range from roughly $40 for three months to $100 per year. The company says it has approximately 130,000 subscribers. With the acquisition of Ladder, which is on pace for $4 million in sales for 2020, it will pair nutritional supplements with its “live and on-demand fitness programs, personalized nutrition plans and virtual access” to certified trainers.