Life Time Fitness Sold For $4 Billion

The company did not mention if it’s dropping plans to form an REIT.

Life Time Fitness Sold For $4 Billion
Life Time Fitness is merging with private equity investors in a deal valued at over $4 billion.
Los Angeles-based Leonard Green & Partners, TPG and LNK Partners will acquire all outstanding stock of Life Time for $72.10 per share. CEO Bahram Akradi has promised to make a rollover investment of $125 million as part of the deal and will remain in his position.
Life Time currently owns and operates 114 fitness centers in North America. The company had previously been considering spinning off its club ownership into a real estate investment trust, but failed to mention if that was now off the table.
The Star Tribune reported that customers shouldn’t notice any changes. “(It’s) merely an owner change for our company,” company spokesman Jason Thunstrom told them. “We are business usual.”
The deal is pending shareholder approval and regulatory review. The company expects the deal to close in the third quarter of 2015.
The transaction could face legal hurdles: Immediately following the announcement, several law firms announced they were launching investigations into whether Life Time’s board of directors breached their fiduciary duties to stockholders by failing to adequately shop the company’s stock to maximize shareholder value.
Shares of Life Time Fitness jumped sharply on news of the sale, up 5 percent to $70.70 by afternoon trading.
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