24 Hour Fitness, San Ramon, CA, announced it has completed its acquisition of 32 Bally Total Fitness clubs, leaving Bally with seven clubs remaining in the company. The sale closed on Friday, 10 days after it was first announced.
24 Hour Fitness, San Ramon, CA, announced it has completed its acquisition of 32 Bally Total Fitness clubs, leaving Bally with seven clubs remaining in the company.
The 32 acquired Bally clubs are in New York, New Jersey, Denver and San Francisco. The sale closed on Friday, 10 days after it was first announced.
"We are delighted to add these new clubs to our growing operation," Mark Smith, CEO of 24 Hour Fitness, said in a statement. "This transaction gives us a running start as we grow our business and introduce innovations that focus on the health and wellness of our members. I can't wait to meet our new team members and begin transforming these new facilities into state-of-the-art 24 Hour Fitness clubs."
24 Hour said in a press release that it already had a strong presence in Colorado and the San Francisco Bay Area prior to the sale, which also represents part of a growth and expansion in New York and New Jersey, the company added.
"This is quite a homecoming for me," 24 Hour President Frank Napolitano said in a statement. "I was born and raised in the New York area, and Mark and I had a great run with Town Sports International in the market, so we're excited to extend our reach further into the region. We have several clubs in the area already, but this will give our members access to a broader range of clubs across the New York metro area."
24 Hour has already begun operating the 32 clubs; converting the club names from Bally to 24 Hour will follow. The acquisition appears to include 14 former Bally clubs in New York state, all six former Bally clubs in New Jersey, all six former Bally clubs in the Bay Area and six clubs in Denver.
Bally Total Fitness, Chicago, now lists seven clubs on its website—six in New York state and one in Colorado. Three of the Bally clubs are in New York City: 106th Street, Madison Avenue and 32nd Street. The other New York state Bally clubs are in Albany, Rochester and Syracuse. The lone Colorado Bally club is in Colorado Springs.
24 Hour Fitness, which declined to comment further to Club Industry about the sale, is No. 2 on Club Industry's Top 100 Clubs list this year with an estimated $1.3 billion in 2013 revenue. The company reported 413 clubs at the end of 2013. Bally is No. 12 on Club Industry's Top 100 Clubs list with an estimated $108 million in revenue, which it reported in 2012.