Estate Planning and Long-Term Growth Capital
LA Fitness International, LLC – 1998 to present
Company History
LA Fitness was founded in 1984 by its current executive management team to purchase and operate underperforming fitness clubs. Through the mid-1990’s, the company grew its club portfolio both by acquiring and turning around existing clubs and by developing, opening and operating newly constructed properties. In 1995, LA Fitness designed and built a new 45,000-square-foot multipurpose health and fitness club that has become the company’s signature look. The club quickly proved successful and LA Fitness management expanded its in-house development efforts for additional prototype clubs. In 1998, with 12 proven prototype clubs in Southern California and Arizona, the company joined forces with us to rapidly increase the rate of its new club development and to roll out its proven concept into several new geographic regions.
Transaction Description
We acquired an interest in LA Fitness in a transaction that provided for the following:
- A partial liquidity event for the founding shareholders.
- The addition of SEP as a board-level resource.
- Long-term growth capital for internal and acquisition expansion.
Post Transaction Highlights
Under the continued leadership of the founding shareholders and the executive management team, LA Fitness has become one of the fastest growing, most successful health and fitness chains in the nation with over 200 locations throughout the United States and Canada. LA Fitness sports clubs feature core fitness programs such as free weights, cardiovascular machines, aerobics, kickboxing and yoga as well as hard-court basketball, racquetball and swimming. In 2000, we invested additional funds to support LA Fitness’ acquisition of Australian Body Works, a 22-unit fitness chain in Atlanta, thereby expanding its presence in the southeast region. The company is continuing its geographic expansion while maintaining a commitment to excellence for its members by providing state-of-the-art equipment and fitness programs.