24 Hour Fitness, which is owned by AEA Investors, Ontario Teachers’ Pension Plan and Fitness Capital Partners, has bought 32 fitness clubs from health club chain Bally Total Fitness. No financial terms were disclosed for the deal.
December 20, 2014 06:00 AM Eastern Standard Time
SAN RAMON, Calif.–(BUSINESS WIRE)–24 Hour Fitness USA, Inc. announced that it has acquired 32 fitness clubs from Bally Total Fitness, including clubs located in New York, New Jersey, Denver and the San Francisco Bay Area. The transaction closed on December 19, 2014. This is the first acquisition for CEO Mark Smith and President Frank Napolitano since the iconic fitness brand was acquired earlier this year by 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.
“I can’t wait to meet our new team members and begin transforming these new facilities into state-of-the-art 24 Hour Fitness® clubs.”
For 24 Hour Fitness, which currently serves almost four million members in more than 400 clubs across 18 states, this acquisition firmly establishes the brand’s commitment to investing in markets where it already has a strong presence, including Colorado and the San Francisco Bay Area. Of equal importance, the transaction signals a focus on growth and expansion in New York and New Jersey as 24 Hour Fitness continues to build its East Coast footprint.
This new acquisition comes alongside a large investment in refurbishment and new equipment across the 24 Hour Fitness portfolio of gyms, as its new leadership focuses on creating a great fitness experience for all members.
“We are delighted to add these new clubs to our growing operation. This transaction gives us a running start as we grow our business and introduce innovations that focus on the health and wellness of our members,” said Mark Smith. “I can’t wait to meet our new team members and begin transforming these new facilities into state-of-the-art 24 Hour Fitness® clubs.”
Smith and President Frank Napolitano signaled that they planned to continue to extend the footprint of 24 Hour Fitness. This is quite a homecoming for me,” said Frank Napolitano. “I was born and raised in the New York area and Mark and I had a great run with Town Sports International in the market, so we’re excited to extend our reach further into the region. We have several clubs in the area already, but this will give our members access to a broader range of clubs across the New York metro area.”
“We will continue to look at new opportunities around the country as we pursue our vision to provide a unique and empowering fitness, health and wellness experience for all our members,” Napolitano said.
With the close of the transaction, the 32 Bally clubs will immediately be operated as 24 Hour Fitness locations, with brand transition to follow.
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.