The sale of 24 hours ended a process that was initiated by Forstmann Little after the death of co-founder Theodore J. Forstmann in late 2011. Forstmann Little had bought 24 Hour Fitness from its founder Mark Mastrov in 2005, paying about USD 1.6 billion in a leveraged buyout. With the sale of the business a total USD 1.85 billion were realised according to people familiar with the matter.

Today, 24 Hour Fitness is one of the largest health and fitness company in the world. The company generates USD 1.3 billion in revenue from over 400 clubs located across the United States with a leading market presence in California, Texas and Colorado.

The buyers are New York private-equity firm AEA Investors LP, the Ontario Teachers' Pension Plan and Fitness Capital Partners, a joint venture between merger advisory firms Dean Bradley Osborne and Global Leisure Partners. AEA is a private equity firm with USD 6 billion in assets under management. Ontario Teachers Pension Plan is the largest single profession pension plan in Canada, and Teachers Private Capital, its private equity arm, has over USD 12 billion in invested capital. Fitness Capital Partners is a "one deal fund" established by affiliates of Global Leisure Partners and Dean Bradley Osborne, the exclusive financial advisors to the consortium. The deal was initiated by Global Leisure Partners, and its operating partner Mark Smith, who acted as consultant in the transaction, has now become CEO of 24 Hour Fitness.

Source: 24 Hour Fitness, Global Leisure Partners, edelhelfer-analysis
Picture: 24 Hour Fitness