Life Time Fitness Acquisition Is Complete, Company Goes Private

Life Time Fitness has returned to operation as a private company.

An investor group led by affiliates of Leonard Green & Partners and TPG completed their previously announced purchase of the Chanhassen, Minnesota-based company on Wednesday. Life Time Fitness ceased trading on the New York Stock Exchange at the close of market Wednesday. The NYSE will remove Life Time Fitness from its listing on June 26. 

The acquisition makes Life Time Fitness an indirect, wholly owned subsidiary of LTF Merger Sub Inc. Other investors include LNK Partners and Life Time Fitness Chairman, President and CEO Baharam Akradi. Life Time Fitness valued the merger at more than $4 billion.

The sale, announced in March, closed on schedule after it was approved by shareholders in a special meeting on June 4 and later received regulatory approval.

Each shareholder except Akradi has the right to receive $72.10 per share in cash as part of the transaction. Akradi committed to making a "rollover investment of $125 million in Life Time common stock" and will remain in his current role.

Akradi, who founded Life Time Fitness in 1992, was set to receive $180.24 million on the acquisition for his 2.499 million shares of common stock (6.4 percent of the company) and $28.08 million for his 389,500 restricted shares, according to an April filing with the Securities and Exchange Commission.

Life Time Fitness debuted on the New York Stock Exchange on June 30, 2004, at an opening price of $20.75 per share and closed Wednesday at $72.07 per share. 

Life Time Fitness operated 115 facilities under the Life Time Fitness and Life Time Athletic brands in the United States and Canada as of Wednesday.

In late February, Life Time reported a 7 percent revenue increase to $1.291 billion in 2014 compared with 2013. The company ranked third last year on Club Industry's annual Top 100 Health Clubs list with 2013 revenue of $1.206 billion.

Leonard Green & Partners is a Los Angeles-based private equity firm. Its investments include Shake Shack, Whole Foods, J. Crew, Activision and Petco.

TPG is an international private investment firm with $67 billion in assets under management in offices around the world. Its investments include Beringer Wines, Burger King, Chobani, Neiman Marcus, Petco and Savers.

LNK Partners typically invests up to $150 million of equity per transaction. Its investments include Staples, Quaker Oats, Pepsi, Gatorade, Panera Bread and Levi Strauss.