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.
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.
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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.
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)