Life Fitness, a global leader in commercial fitness equipment, announced that its parent company, Brunswick Corporation, has entered into a definitive agreement with KPS Capital Partners.
Under the new deal, KPS, a leading investment firm focused on industrial companies and manufacturing across a diverse array of industries, will acquire Brunswick’s fitness business and related brands, including Life Fitness.
“We look forward to our future with KPS and are excited about this incredible opportunity to collaborate with a firm with a tremendous track-record of working with similar companies,” said Jason Worthy, the president of Life Fitness. “KPS recognizes our world-class brand positioning, the value of our customer relationships, our iconic standing within the fitness industry, and our long-term earning potential. We will work closely with KPS to develop and execute a focused strategic plan centered around our mission to inspire healthier lives. We will build upon our long and successful history of product development and technology leadership, with the goal of providing the highest-quality solutions and services for a broad range of fitness facilities and fitness consumers.”
Under the agreement, which was approved by Brunswick’s board of directors, KPS will pay approximately $490 million in cash to acquire the Fitness business and its brands. The transaction is expected to close during the second quarter of 2019, following receipt of regulatory approvals.
“We are very excited to invest in Life Fitness, the leading global brand in fitness equipment,” said Jay Bernstein, a partner of KPS. “Life Fitness has the largest global installed base of equipment, with approximately two million pieces of cardiovascular and strength equipment used regularly by over 60 million people worldwide. We look forward to working with President Jason Worthy, his management team, and Life Fitness employees globally to build on this great platform and the company’s strong design, innovation and product development heritage. KPS’ track record of leveraging its capital, global platform, and commitment to investing in technology, innovation, growth, and customer service presents a tremendous opportunity for Life Fitness. We are exceedingly confident that Life Fitness will thrive as an independent company.”