Latest News
Equity Firms to Buy Life Time Fitness in USD 4bn Deal
Monday 16 March 2015

16 March 2015 - US-based fitness spa and health programme organiser Life Time Fitness, Inc. (NYSE: LTM) along with private equity firms Leonard Green and Partners and TPG have entered into a definitive merger agreement under which affiliates of Leonard Green and Partners and TPG will acquire Life Time in a transaction valued at more than USD 4.0bn, the company said on Monday.

Other key investors include private equity firm 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 USD 125m in Life Time common stock.

Life Time's board of directors unanimously approved the merger agreement and recommends that the company's shareholders vote in favor of the transaction.

Under the terms of the merger agreement the investors will acquire all of the outstanding shares of Life Time Fitness common stock for USD 72.10 per share in cash.

This price represents a significant premium to Life Time's closing share price of 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.

The merger is subject to approval from Life Time's shareholders and other customary closing conditions. The transaction is currently expected to close in 3Q15.

Life Time Fitness helps organisations, communities and individuals achieve health objectives, athletic aspirations and fitness goals by engaging in their areas of interest both inside and outside of Life Time's sports, professional fitness, family recreation and spa destinations, most of which operate 24 hours a day, seven days a week.

Guggenheim Securities and Wells Fargo Securities are serving as the company's financial advisors. Skadden, Arps, Slate, Meagher and Flom LLP and Faegre Baker Daniels LLP are serving as its legal advisors. Latham and Watkins LLP is serving as legal advisor to Leonard Green and Partners and Ropes and Gray LLP is serving as legal advisor to TPG.

Fully committed debt financing is expected to be provided by affiliates of Deutsche Bank Securities Inc., Goldman, Sachs and Co., Jefferies, BMO Capital Markets, RBC Capital Markets, Macquarie Capital and Nomura, who also are serving as financial advisors to Leonard Green and Partners and TPG. Kirkland and Ellis LLP served as legal advisor to LNK Partners.
Date Published: 16/03/2015
Target: Life Time Fitness, Inc
Country: USA
Deal Size: 4bn (USD)
Sector: Business and Consumer Services
Type: LBO
Financing: Cash and Stock
Status: Agreed
Buyer: Leonard Green and Partners , TPG Affiliates, LNK, Life Time Chairman
Buyer Advisor: Latham and Watkins LLP , Leonard Green and Partners , Ropes and Gray LLP