NEW YORK (CBSDFW.COM/AP) — Life Time Fitness Inc. said Monday that it will sell itself to two private equity firms for more than $2.8 billion, in a deal that will turn the gym chain into a private company.
The companies value the deal at more than $4 billion, when debt is included.
Leonard Green & Partners and TPG will pay $72.10 for each share of Life Time Fitness, a 7.3 percent premium from its close of $67.20 on Friday. The deal is expected to close in the third quarter. CEO Bahram Akradi will stay in his role at the company.
Life Time Fitness operates 114 large gyms across the U.S. and in Canada, including nine in North Texas, that offer fitness classes, spa amenities, personal training and other services. It also sells a line of nutritional products, publishes Experience Life magazine and runs a unit that holds running, cycling and triathlon events. The company is based in Chanhassen, Minnesota.
In August, Life Time Fitness said it was considering splitting itself into two companies: one that would operate the fitness centers and another that would be a real estate investment trust.
Shares of Life Time Fitness rose $3.48, or 5.2 percent, to close at $70.68 in Monday.
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