The University of Mississippi Medical Center (UMMC) will take over a chain of six for-profit clubs in the Jackson, MS, area beginning Jan. 1.
The acquisition of the Courthouse Racquet & Fitness chain is part gift, part purchase, the Associated Press reported. In the plan, which was approved last week, UMMC would own four of the clubs while taking over leases for the other two.
The College Board approved a plan Monday where UMMC will pay $9.26 million for Courthouse Racquet & Fitness, whose real estate is valued at $10.5 million. Owner John L. Black Jr. of Madison will give $4.8 million in cash immediately to the medical center and give $500,000 a year for 10 years, for a total of another $5 million.
Power Wellness Management, Addison, IL, will manage the six clubs that UMMC is taking over, increasing its portfolio to 31 clubs in the United States. Power Wellness will get a flat fee of $144,000 a year, plus 12 percent of the monthly operating profits from the clubs, the AP reported. Current employees of Courthouse Racquet & Fitness will become employees of Power Wellness.
"This is an exciting time for Power Wellness as we continue to grow," Tom Rhind, president of Power Wellness, said in a company news release. "We are excited to welcome UMMC into the Power Wellness family as we start the New Year."