Falconhead-backed Extreme Fitness Buys Some Bally's Canadian Clubs
By Hilary Canada for LBO Wire
4/26/2007 – Falconhead Capital LLC's Extreme Fitness Inc. will acquire some of the Canadian operations of Bally Total Fitness Holding Corp.
Bally is selling all 16 of its Toronto facilities for an estimated C$19.6 million ($17.6 million). Six of the facilities will go to Extreme Fitness and the other 10 will be acquired by GoodLife Fitness Centres Inc. The sale is part of Bally's strategy to streamline and focus on U.S. operations.
The acquisition fits into Falconhead's plans for Extreme Fitness to expand throughout the Toronto area. In 2006, Falconhead paid $25 million for a majority stake in the fitness outfit, which specializes in personal training.
Falconhead typically invests in lower middle market companies with earnings before interest, taxes, depreciation and amortization of $10 million to $30 million in the lifestyle/leisure sector.