Life Time Fitness to be Taken Private for More than $4B

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Gym operator Life Time Fitness Inc said it would be taken private by Leonard Green & Partners and TPG in a deal valued at over $4 billion.

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The offer of $72.10 per share represents a 7.3 percent premium to Life Time's Friday close. The company's shares were trading at $70.52 before the opening bell on Monday.

Life Time said last August said it was exploring a potential conversion of its property into a real-estate investment trust.

Since then the company's shares have risen 62 percent even as the company reported lower-than-expected profit for the last three quarters.

Life Time Chief Executive Bahram Akradi, who will remain in his role, will make a rollover investment of $125 million in the company's stock as part of the deal, the company said.

Other investors involved in the deal include private equity firm LNK Partners.

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The Wall Street Journal reported earlier this month that Life Time was in advanced talks with private equity bidders. (http://on.wsj.com/18nJ8eD)

Guggenheim and Wells Fargo are Life Time's financial advisers. Skadden, Arps, Slate, Meagher & Flom LLP and Faegre Baker Daniels LLP are legal advisors.

Latham & Watkins LLP is legal adviser to Leonard Green & Partners and Ropes & Gray LLP is advising TPG. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Don Sebastian and Saumyadeb Chakrabarty)