PE Consortium acquires Life Time Fitness

The $4 billion take private deal was led by TPG and Leonard Green & Partners

A group of private equity investors led by TPG and Leonard Green & Partners has acquired Life Time Fitness for approximately $4 billion, in a take private deal. Other investment partners include the Healthy Way of Life Company and LNK Partners.

Life Time chairman, president and chief executive officer, Bahram Akradi will remain in his role and has committed to make a rollover investment of $125 million in Life Time common stock.

Life Time shareholders received $72.10 per share in cash. The company's stock closed at $41.60 on Aug. 22, 2014 the most recent trading day before the company announced that its board of directors and senior management team had initiated a process to explore a potential conversion of real estate assets into a Real Estate Investment Trust (REIT).

The move to a REIT was as the result of pressure from the company’s then largest shareholder, activist firm Marcato Capital Management. The subsequent take private deal represents a significant shareholder premium and one of the largest buyouts so far this year.

Each of the firms involved have significant consumer investment verticles, that include related companies. Leonard Green & Partners is an investor in Equinox health clubs, and LNK Partners is an investor in Beachbody.