24 Hour Fitness, San Ramon, CA, announced that it has sold all 18 of its California Fitness clubs in Asia to The Ansa Group. Financial terms of the sale, which closed on Monday, were not disclosed.
The announcement comes a few days after 24 Hour acknowledged that its parent company, New York-based private-equity firm Forstmann Little, is in the process of putting the company up for sale. Sources tell Club Industry that 24 Hour has been trying to sell the California Fitness clubs for a long time. The deal adds more value to 24 Hour prior to its sale, since a prospective buyer no longer has to be concerned with operating clubs in Asia, sources say.
The California Fitness clubs, which were acquired by 24 Hour in 1999, are located in Hong Kong, Singapore and China.
“The sale of our Asia-based California Fitness clubs will enable 24 Hour Fitness to remain laser focused on our team members, members and clubs throughout the U.S.,” Carl Liebert, president and CEO of 24 Hour, said in a statement. “While our California Fitness operations no longer align with our greater business objectives, we’re proud of our contributions to the exercise and fitness industry in Asia.”
24 Hour says it now has 415 clubs in operation.
The Ansa Group owns international consumer, health and property businesses with operations in Hong Kong, Singapore, Guangzhou, Shanghai, Wuhan, Changsha, Beijing, Kuala Lumpur and Sydney. Ansa manages retail operations in China, Hong Kong and Malaysia, FMCG brands and a portfolio of more than 400 consumer, health and food products which are distributed in international markets.