The Company has entered into a definitive merger agreement under which affiliates of Leonard Green & Partners and TPG will acquire Life Time in a transaction valued at more than EUR 3.0 billion (USD 4.0 billion). Other key investors include LNK Partners and Life Time Chairman, President and Chief Executive Officer, Bahram Akradi, who will remain in his role and has committed to make a rollover investment of EUR 94 million (USD 125 million) in Life Time common stock. Leonard Green & Partners already have two fitness providers in their portfolio: Premium operator Equinox Fitness and The Pure Group in Asia.

The merger is still subject to approval from Life Time’s shareholders and other customary closing conditions. The transaction is currently expected to close in the third quarter of 2015.

Under the terms of the merger agreement the investors will acquire all of the outstanding shares of Life Time Fitness common stock for EUR 54.15 (USD 72.10) per share in cash. This price represents a significant premium to Life Time’s closing share price of EUR 31,24 (USD 41.60) on August 22, 2014, the most recent trading day before the Company announced that its board of directors and senior management team had initiated a process to explore a potential conversion of real estate assets into a Real Estate Investment Trust (REIT).

Currently, the Company operates 114 clubs under the brands Life Time Fitness and Life Time Athletic in the United States and Canada. Six of the clubs were opened in 2014 and one so far in 2015. At the same time, revenues increased by 7.0 % from EUR 0.91 billion (USD 1.21 billion) in 2013 to EUR 0.97 billion (USD 1.29 billion) in 2014. Further five clubs are scheduled to open in 2015. Most of the operator’s facilities are open 24 hours a day, seven days a week.

Source & Image: Life Time Fitness