June 2^nd, 2014
GLP initiates the acquisition of 24 Hour Fitness from Forstmann Little

We are pleased to announce that 24 Hour Fitness was acquired from Forstmann Little on May 30, 2014 by a consortium consisting of AEA Investors, Ontario Teachers Pension Plan/Teachers’ Private Capital, and Fitness Capital Partners. AEA is one of the premier private equity firms in the world with $6 B in assets under management and a long, demonstrated track record of successful investments in the consumer and retail sector. Ontario Teachers Pension Plan is the largest single profession pension plan in Canada, and Teachers Private Capital, its private equity arm, has over $12 B in invested capital. Fitness Capital Partners is a registered investment adviser established by affiliates of Global Leisure Partners and Dean Bradley Osborne, the exclusive financial advisors to the consortium.

Company Overview– 24 Hour Fitness is the second largest health and fitness company in the world. The company generates $1.3B in revenue from over 400 clubs located across the United States with a leading market presence in California, Texas and Colorado.

Fitness Capital Partners- Fitness Capital Partners (FCP) has invested $182 million in the company partnering with AEA and Ontario Teacher’s Pension Plan to govern the business. Fitness Capital Partners’ joint managing partners are Robert L. Berner III, and Mark W.B. Harms. Rob Berner commented, “This transaction is a new model for private equity. We are happy to have pulled together an outstanding group of institutional and family office investors who share our vision for the future of private equity and the success of 24 Hour. We are proud to be partnering in the investment with two world class private equity firms, AEA Investors and Ontario Teachers Pension Plan/Teachers Private Capital. They have been incredibly supportive throughout this process."

GLP Roles- GLP initiated this transaction. Two GLP Operating Partners, Frank Napolitano and Mark Smith, acted as consultants to the consortium, are members of FCP, and are expected to assume senior management positions in the company. Commenting on the transaction, Mark Harms, Chairman and CEO of Global Leisure Partners, said “The acquisition of 24 Hour Fitness by AEA Investors, Ontario Teachers Pension Plan/Teachers’ Private Capital and Fitness Capital Partners is the result of a uniquely structured bilaterally negotiated transaction. Frank Napolitano and Mark Smith were crucial to making this deal a reality, and we are grateful for their wisdom and managerial experience in the industry. We are equally excited that they will be taking senior management roles and leading the value creation efforts. This is another example of GLP breaking new ground. We at GLP are proud of our role in pulling together the deal, and the seminal nature of the transaction.”

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