![\"Town](\"http:\/\/www.clubinsideronline.com\/news\/wp-content\/uploads\/Town-Sports-International-300x148.png\")
Town Sports International<\/p>\nTown Sports International<\/p>\n
NEW YORK, N.Y.<\/strong> – Town Sports International Holdings, Inc. (“TSI” or the “Company”) (Nasdaq: CLUB), a diversified holding company and one of the largest owners and operators of fitness clubs in the Northeast, has announced that it entered into an agreement to acquire the studio business of Flywheel Sports, Inc. (\u201cFlywheel\u201d). The acquisition is expected to close in the first quarter of 2020, upon satisfaction of customary closing conditions. Established in 2010, Flywheel revolutionized competitive indoor cycling. Flywheel has expanded to 29 locations across the United States and multiple modalities and content, including its acclaimed results-driven indoor cycling and off-bike precision training workouts, including \u201cFlyBarre\u201d and \u201cFlyFIT.\u201d<\/p>\n “Flywheel is an iconic name in the fitness industry and this acquisition accelerates TSI\u2019s strategic plan as we continue to upgrade our club network and offer more value to our members. The Flywheel acquisition fits perfectly into TSI\u2019s strategy, as it enables us to elevate our members\u2019 fitness experience by offering a luxury, boutique product while elevating their fitness routines, along with the benefits of additional formats and locations. We look forward to integrating and adopting Flywheel\u2019s five star standards and operational excellence within TSI as we raise the operational and service standards at all TSI locations,\u201d said Patrick Walsh, TSI\u2019s Chairman and CEO.<\/p>\n Walsh continued, \u201cThrough this acquisition, TSI plans to enhance the gym experience, similar to the industry\u2019s aggregators, and offer more variety in content, locations and experience for a lower cost.\u201d<\/p>\n “Much has been written about the changes the fitness industry is currently undergoing,\u201d said Darren Richman, co-Founder of Kennedy Lewis Investment Management, Flywheel\u2019s current owner. \u201cAs in the case of providers like Netflix who reimagined the importance of content, and the need to provide customers with more for less, we think that Patrick is following the exact same path at TSI in the fitness space. He is facilitating the delivery of more fitness modalities and content for value conscious consumers.\u201d<\/p>\n TSI is expected to benefit from enhanced revenue potential as the Company provides its over 600,000 members access to Flywheel\u2019s boutique facilities through packaged membership options. Flywheel\u2019s more than 300,000 members will also benefit from similar membership packages as more than half of Flywheel locations are within two miles of a TSI location.<\/p>\n As part of the acquisition, Kennedy Lewis has agreed to provide seller financing of $25 million in the form of a second lien loan. Kennedy Lewis has also agreed to assist with the refinancing of TSI\u2019s existing term loan, with a follow-on commitment of up to $25 million of additional second lien debt. The closing and follow on commitment is conditioned upon TSI\u2019s ability to reach acceptable terms with its existing term loan lenders. Until the acquisition closes, TSI and Flywheel have agreed to cross-market each other\u2019s products.<\/p>\n","protected":false},"excerpt":{"rendered":" NEW YORK, N.Y.<\/strong> – Town Sports International Holdings, Inc. (“TSI” or the “Company”) (Nasdaq: CLUB), a diversified holding company and one of the largest owners and operators of fitness clubs in the Northeast, has announced that it entered into an agreement to acquire the studio business of Flywheel Sports, Inc. (\u201cFlywheel\u201d). The acquisition is expected to close in the first quarter of 2020, upon satisfaction of customary closing conditions. Established in 2010, Flywheel revolutionized competitive indoor cycling. Flywheel has expanded to 29 locations across the United States and multiple modalities and content, including its acclaimed results-driven indoor cycling and off-bike precision training workouts, including \u201cFlyBarre\u201d and \u201cFlyFIT.\u201d<\/p>\n","protected":false},"author":1,"featured_media":3291,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[481,24],"_links":{"self":[{"href":"http:\/\/www.clubinsideronline.com\/news\/wp-json\/wp\/v2\/posts\/5170"}],"collection":[{"href":"http:\/\/www.clubinsideronline.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.clubinsideronline.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.clubinsideronline.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.clubinsideronline.com\/news\/wp-json\/wp\/v2\/comments?post=5170"}],"version-history":[{"count":1,"href":"http:\/\/www.clubinsideronline.com\/news\/wp-json\/wp\/v2\/posts\/5170\/revisions"}],"predecessor-version":[{"id":5171,"href":"http:\/\/www.clubinsideronline.com\/news\/wp-json\/wp\/v2\/posts\/5170\/revisions\/5171"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.clubinsideronline.com\/news\/wp-json\/wp\/v2\/media\/3291"}],"wp:attachment":[{"href":"http:\/\/www.clubinsideronline.com\/news\/wp-json\/wp\/v2\/media?parent=5170"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.clubinsideronline.com\/news\/wp-json\/wp\/v2\/categories?post=5170"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.clubinsideronline.com\/news\/wp-json\/wp\/v2\/tags?post=5170"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}