Global Leader in Commercial Fitness Equipment
NEW YORK, May 6, 2019 /PRNewswire/ -- KPS Capital Partners, LP ("KPS") announced today that, through a newly formed affiliate, it has signed a definitive agreement to acquire the fitness business of Brunswick Corporation, including the Life Fitness brand ("Life Fitness" or the "Company"), for approximately $490 million in cash.
Life Fitness is the global leader in commercial fitness equipment and game tables. The Company manufactures and sells its strength and cardiovascular equipment and billiards tables and accessories under the brand names Life Fitness, Hammer Strength, Cybex, Indoor Cycling Group, SCIFIT and Brunswick Billiards. The Company's products are sold in more than 160 countries.
Jay Bernstein, a Partner of KPS, said, "We are very excited to invest in Life Fitness, the leading global brand in fitness equipment. 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."
Jason Worthy, President of Life Fitness, said, "We look forward to this incredible opportunity to collaborate with a firm with a tremendous track record of working with similar companies. 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 on 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."
Completion of the transaction is expected in the second quarter of 2019 and is subject to customary closing conditions and approvals.
Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to KPS and its affiliates.
About Life Fitness
Life Fitness is the global leader in commercial fitness equipment and game tables. The Company manufactures and sells strength and cardiovascular equipment and billiards tables and accessories under the brand names Life Fitness, Hammer Strength, Cybex, Indoor Cycling Group, SCIFIT and Brunswick Billiards. Its equipment is sold in over 160 countries. Headquartered outside Chicago in Rosemont, Illinois, Life Fitness is a division of Brunswick Corporation (NYSE: BC). For more information about Life Fitness products and services, visit www.lifefitness.com.
About KPS Capital Partners, LP
KPS is the manager of the KPS Special Situations Funds, a family of investment funds with approximately $5.1 billion of assets under management (as of December 31, 2018). For over two decades, the Partners of KPS have worked exclusively to realize significant capital appreciation by making controlling equity investments in manufacturing and industrial companies across a diverse array of industries, including basic materials, branded consumer, healthcare and luxury products, automotive parts, capital equipment and general manufacturing. KPS creates value for its investors by working constructively with talented management teams to make businesses better, and generates investment returns by structurally improving the strategic position, competitiveness and profitability of its portfolio companies, rather than primarily relying on financial leverage. The KPS Funds portfolio companies currently have aggregate annual revenues of approximately $5.8 billion, operate 99 manufacturing facilities in 27 countries, and have nearly 21,000 employees, directly and through joint ventures worldwide. The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.
SOURCE KPS Capital Partners, LP