Life Time Fitness To Be Acquired By Leonard Green & Partners,TPG For About $4bln

(RTTNews) - Life Time Fitness Inc. (LTM) said that it agreed to be acquired by affiliates of Leonard Green & Partners and TPG in a transaction valued at more than $4.0 billion.

Other key investors include LNK Partners and Life Time Chairman, President and Chief Executive Officer, Bahram Akradi, who will remain in his role and has committed to make a rollover investment of $125 million in Life Time common stock.

Life Time's board of directors unanimously approved the merger agreement and recommends that the Company's shareholders vote in favor of the transaction.

As per the terms of the merger agreement the investors will acquire all of the outstanding shares of Life Time Fitness common stock for $72.10 per share in cash. This price represents a significant premium to Life Time's closing share price of $41.60 on August 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.

The merger is subject to approval from Life Time's shareholders and other customary closing conditions. The transaction is currently expected to close in the third quarter of 2015.