Forstmann Little to Buy 24 Hour Fitness

San Ramon, Calif. (May 3, 2005) -- Investment firm Forstmann Little & Co. said Tuesday that it is acquiring privately held 24 Hour Fitness Worldwide, Inc., one of the world's largest fitness chains, in a deal valued at about $1.6 billion.

Mark S. Mastrov, 24 Hour's chairman and chief executive, will continue running the company, which brings in more than $1.1 billion in revenue from about 3 million customers at its more than 330 fitness centers worldwide.  He will also retain a "significant" stake in the business, 24 Hour said.

Forstmann plans to finance the transaction using more than $900 million from its equity and subordinated debt funds, and will pay for the rest through a senior loan facility.

The acquisition is scheduled to close in June and is subject to regulatory approval, the companies said.