Forstmann Little & Co has sold 24 Hour Fitness Worldwide. An investment group led by AEA Investors LP and the Ontario Teachers’ Pension Plan has acquired the business. Headquartered in San Ramon, CA, 24 Hour Fitness is a health club chain.
Forstmann Little & Co. (“Forstmann Little”), a private investment firm, today announced that it has completed the sale of 24 Hour Fitness Worldwide, Inc. to an investment group led by AEA Investors LP and the Ontario Teachers’ Pension Plan.
“Today’s sale of 24 Hour Fitness brings to a close the final chapter of Ted Forstmann’s remarkable career as an investor”
Headquartered in San Ramon, CA, 24 Hour Fitness is a leading health club industry pioneer, serving nearly four million members and employing 21,000 fitness professionals in more than 400 clubs across the United States. The company was acquired in 2005 by Forstmann Little, the private equity firm founded and led by Theodore Forstmann. 24 Hour Fitness is the last significant portfolio company controlled by the firm following the death of Ted Forstmann in November 2011.
During its final year under Forstmann Little’s ownership, 24 Hour Fitness was led by former Yahoo! executive Elizabeth Blair. Ms. Blair joined 24 Hour Fitness in February 2013 and was named Chief Executive Officer in September 2013. Ms. Blair announced that she will not be remaining with the company following today’s sale.
“We would like to express our appreciation to our limited partners, who have shown great patience in their support of 24 Hour Fitness and its management through the years, helping lead to this successful outcome,” said Winston Hutchins, General Partner of Forstmann Little.
“Today’s sale of 24 Hour Fitness brings to a close the final chapter of Ted Forstmann’s remarkable career as an investor,” said Mark MacDougall, a partner of the law firm Akin Gump Strauss Hauer & Feld, LLP, speaking on behalf of Forstmann Little. “Elizabeth Blair has done an extraordinary job in leading the company to this very successful conclusion. I think that Ted would be very pleased with Elizabeth and her executive leadership team over the past 16 months,” MacDougall noted.
“We would like to thank the Board of Directors and all of the employees of 24 Hour Fitness for all that they have done to bring us to this day,” said Forstmann Little Managing Director Kathleen Broderick. “We are confident that this fine company will continue to flourish and grow under the leadership of AEA and Ontario Teachers.”
The sale price and terms of the transaction were not made public.
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