Town Sports International Holdings Inc. (TSI), New York, announced today it has agreed to acquire Lucille Roberts Health Clubs businesses. The deal is expected to close by the end of August and will add 16 New York City-area clubs to TSI's portfolio.
"This acquisition is a prime example of TSI's targeted growth strategy," TSI CEO Patrick Walsh said in a media release. "Lucille Roberts has a loyal membership base that loves the women's only membership option. While the acquired locations will continue to operate as women's only gyms, TSI will also offer an option for Lucille Roberts' members to access all the clubs in the diverse TSI portfolio. This acquisition will allow those members to utilize the broad array of fitness options and convenient workout locations that are synonymous with New York Sports Clubs."
Although ownership will change, the newly acquired clubs will continue to operate as Lucille Roberts facilities. TSI plans to "retain virtually all club employees," the release said.
The 16 clubs are located across Manhattan, Brooklyn, Queens, The Bronx, Long Island and New Jersey.
"For more than 4 decades, Lucille Roberts has been providing women with an affordable first-rate fitness experience in a comfortable environment that they can call their own," Lucille Roberts co-founder Bob Roberts said in the release. "TSI's industry knowledge and strategic expertise make them the ideal company to preserve and foster the Lucille Roberts vision."
Earlier this year in TSI's first quarter financial report, Walsh hinted that TSI was aiming to acquire more clubs. TSI reported a 2.2. percent decrease in first quarter revenue to $99.1 million, which Walsh attributed to club closures and declines in miscellaneous fees. TSI also reported its fifth-straight year of revenue decline in 2016.
As of March 31, TSI operated 149 clubs with 551,000 members. More than 120 of those facilities are New York Sports Clubs and Boston Sports Clubs.