24 Hour Fitness Acquires 32 Bally Clubs
Posted: December 20, 2014 in Chains
24 Hour Fitness
SAN RAMON, CA – 24 Hour Fitness USA, Inc. announced that it has acquired 32 fitness clubs from Bally Total Fitness, including clubs located in New York, New Jersey, Denver and the San Francisco Bay Area. The transaction closed on December 19, 2014. This is the first acquisition for CEO Mark Smith and President Frank Napolitano since the iconic fitness brand was acquired earlier this year by AEA Investors, a leader in the private equity industry; Ontario Teachers’ Pension Plan, Canada’s largest single-profession pension plan – and one of the world’s largest; and Fitness Capital Partners, a fund organized by Dean Bradley Osborne and Global Leisure Partners.
For 24 Hour Fitness, which currently serves almost four million members in more than 400 clubs across 18 states, this acquisition firmly establishes the brand’s commitment to investing in markets where it already has a strong presence, including Colorado and the San Francisco Bay Area. Of equal importance, the transaction signals a focus on growth and expansion in New York and New Jersey as 24 Hour Fitness continues to build its East Coast footprint.
This new acquisition comes alongside a large investment in refurbishment and new equipment across the 24 Hour Fitness portfolio of gyms, as its new leadership focuses on creating a great fitness experience for all members.
“We are delighted to add these new clubs to our growing operation. This transaction gives us a running start as we grow our business and introduce innovations that focus on the health and wellness of our members,” said Mark Smith. “I can’t wait to meet our new team members and begin transforming these new facilities into state-of-the-art 24 Hour Fitness® clubs.”
Smith and President Frank Napolitano signaled that they planned to continue to extend the footprint of 24 Hour Fitness. This is quite a homecoming for me,” said Frank Napolitano. “I was born and raised in the New York area and Mark and I had a great run with Town Sports International in the market, so we’re excited to extend our reach further into the region. We have several clubs in the area already, but this will give our members access to a broader range of clubs across the New York metro area.”
“We will continue to look at new opportunities around the country as we pursue our vision to provide a unique and empowering fitness, health and wellness experience for all our members,” Napolitano said. With the close of the transaction, the 32 Bally clubs will immediately be operated as 24 Hour Fitness locations, with brand transition to follow.
