Ontario Teachers’ Pension Plan has partnered with U.S. private equity firm AEA Investors and Fitness Capital Partners in the purchase of 24 Hour Fitness USA Inc. The seller was U.S. private equity firm Forstmann Little & Co, which bought the company for US$1.6 billion in 2005. Financial terms of this sale were not disclosed. Based in San Ramon, California, 24 Hour Fitness operates a network of health clubs, serving 4 million members in more than 400 clubs across the United States. Concurrent with the acquisition, the company announced that Mark Smith has been named its new CEO, and that Frank Napolitano has been named its new president.
24 Hour Fitness Acquired by AEA Investors, Ontario Teachers’ Pension Plan and Fitness Capital Partners
Company Names New CEO, President
SAN RAMON, Calif., May 30, 2014 (BUSINESS WIRE) — 24 Hour Fitness USA, Inc. announced that AEA Investors, a leader in the private equity industry; Ontario Teachers’ Pension Plan, Canada’s largest single-profession pension plan – and one of the world’s largest; and Fitness Capital Partners, a fund organized by Dean Bradley Osborne and Global Leisure Partners have completed their acquisition of the Company from Forstmann Little & Co.
24 Hour Fitness also announced that Mark Smith will join as Chief Executive Officer, and Frank Napolitano has been named President.
“I’m honored and delighted to lead 24 Hour Fitness – which has pioneered so many breakthroughs in the fitness industry – into the next chapter of the Company’s success,” said Mark Smith. “I’d like to thank former owner Forstmann Little for its strategic guidance of 24 Hour Fitness through a period of solid growth, and former CEO Elizabeth Blair for her execution through the acquisition. Our new owners are firmly committed to supporting a strong, sustainable future, and I look forward to working with 24 Hour Fitness executives and team members whom I have come to know as a talented and intensely motivated team.”
Smith and his family will relocate from Australia, and he will take office in July. Until then, the Office of the CEO has been established and will report to the Board of Directors for 24 Hour Fitness. The Office of the CEO comprises Frank Napolitano; Danny De La Rosa, President of Clubs; and Patrick Flanagan, Chief Financial Officer.
Terms of the transaction were not disclosed.
About 24 Hour Fitness
Headquartered in San Ramon, Calif., 24 Hour Fitness is a leading health club industry pioneer, serving nearly 4 million members in more than 400 clubs across the U.S. For more than 30 years, the company has been dedicated to helping members change their lives and reach their individual fitness goals. With convenient club locations, personal training services, popular group exercise classes and a variety of strength, cardio and functional training equipment, 24 Hour Fitness offers fitness solutions for everyone.
Please call 1-800-224-0240 or visit 24hourfitness.com for more information and to find the club nearest you.
SOURCE: 24 Hour Fitness USA, Inc.
for 24 Hour Fitness
Robin Rootenberg, 866-819-7414
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