Life Time Fitness Inc. to Go Private With $4 Billion Takeover

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By Jacob Maslow

lifetime fitness company logoLife Time Fitness Inc. (NYSE:LTM) shares are up 5.2 percent after a $4 billion takeover was announced. The all-cash deal, valued at $72.1 per share, by Leonard Green & Partners also includes a $125 million investment from Life Time Fitness’ CEO, Bahram Akradi. The investment will come from a common stock rollover.

Life Time Fitness currently operates 114 fitness centers in Canada and the United States.

A company spokesperson states that nothing will change for current club members. Aside from being acquired, the company will continue on its current plan for growth. The deal is expected to close during the third-quarter following approval from shareholders.

New centers are expected to be added to the company as a result of the acquisition. Initial reports show that there were two firms bidding on the company prior to the announcement.

Life Time exceeded growth expectations in the fourth-quarter of 2014. Adjusted net income was 2 cents higher per share on the quarter. Annual revenue for the company reached $1.29 billion in 2014.

Life Time Fitness has not announced a change to its current plan, which was revealed in August, to covert the company’s real estate holdings into a separate company. The business would be split among fitness and a real estate investment trust.

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