Life Time Fitness, Inc. (NYSE: LTM) announced on Monday that Leonard Green & Partners LP and TPG will acquire the gym operator for approximately $4 billion. Under terms of the agreement, investors will acquire all of the outstanding shares of Lifetime Fitness common stock for $72.10 per share in cash.
According to the press release, "Following a comprehensive review by Life Time's board of directors of strategic alternatives to enhance shareholder value, we are pleased to have reached this agreement, which provides our shareholders with immediate and substantial cash value representing a significant premium to our unaffected share price," said Bahram Akradi, President and CEO of Life Time Fitness. "There are no words to describe my gratitude for the confidence and significant commitment Leonard Green & Partners, TPG and LNK Partners have made to Life Time and our management team."
The merger is expected to be completed by the third quarter of 2015.
Shares of Life Time Fitness closed on Friday at $67.20; shares were up more than 5 percent at $70.65 in the premarket.
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