Life Time Fitness sold to private equity companies
Chanhassen-based Life Time Fitness said Monday it is merging with private equity companies based in Los Angeles and Fort Worth, Texas.
Life Time valued the deal at more than $4 billion, and said LNK Partners and Life Time founder Bahram Akradi are also investors in the deal. Akradi will remain in his role as the company's president and CEO. The investors are paying $72.10 per share.
The company's board of directors unanimously approved the deal. The sale is expected to close in the third quarter of 2015.
A company spokesman on Monday called the deal "merely an ownership change. Our operations remain business as usual for our members and employees."
The news comes after the company said last year it was exploring the possibility of converting its real estate into a real estate investment trust.
Life Time runs 114 fitness centers in 24 states and one Canadian province. It established its first club in 1992 in Brooklyn Park. Last year, it earned profits of $114 million on sales of $1.3 billion.
MPR News reporter Martin Moylan contributed to this report.
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