Home Lifestyle Life Time Fitness to be purchased for $4 billion

Life Time Fitness to be purchased for $4 billion

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Life Time Fitness Inc. could be acquired in a deal valued at more than $4 billion later this year.

The Minnesota-based company on Monday announced it has entered into a “definitive merger agreement” with Los Angeles-based private equity firm Leonard Green & Partners and global private investment firm TPG. The company announcement said Life Time’s board of directors unanimously approved the purchase deal and recommended that the company’s shareholders vote in favor of the transaction.

Life Time Fitness in Harrison. File photo
Life Time Fitness in Harrison. File photo

Life Time Fitness, a publicly traded company, opened its first Westchester location last year in Harrison at 1 Westchester Park Drive. The 206,000-square-foot fitness center was built for more than $50 million and replaced a building once occupied by the Gannett-owned newspaper The Journal News. The company operates 114 centers in the U.S. and Canada, with two in New York.

Other key investors in the company include LNK Partners and Bahram Akradi, Life Time chairman, president and CEO, who will remain in his role and has committed to make a rollover investment of $125 million in Life Time common stock, according to the company announcement.

Investors will acquire all of the outstanding shares of Life Time Fitness common stock for $72.10 per share in cash. The company’s closing share price was $41.60 on Aug. 22, days before it announced it had begun the process to explore a potential conversion of real estate assets into a real estate investment trust.

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

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