Forstmann Little, the New York-based private equity firm and parent company of 24 Hour Fitness, San Ramon, CA, has withdrawn 24 Hour from a private sale process that was initiated earlier this year, Club Industry has learned.
The decision to withdraw 24 Hour this week from the sale process was made in consultation with independent investment bankers, the company said in a statement to Club Industry. The principal reason for the decision was made after an assessment of market conditions. Forstmann Little concluded that moving forward to a final sale under the current conditions "was not in the best interests of the shareholders."
Forstmann Little and the board of directors of 24 Hour will continue to monitor the marketplace, the company said, and any future decision to offer 24 Hour for sale will be based on an assessment that market conditions favor the best interests of the shareholders.
"24 Hour Fitness continues to grow its business under the guidance of a veteran management team," 24 Hour President and CEO Carl Liebert said in a statement. "We remain committed to improving lives through fitness and are excited to help our members and guests along their fitness journey as we welcome the New Year."