NEW YORK, N.Y. and TORONTO, Ontario, April 25, 2007 – Falconhead Capital, LLC, a private equity firm specializing in investments in consumer-focused businesses, today announced that its portfolio company Extreme Fitness, Inc., a leading fitness club operator in the Greater Toronto Area, has signed a definitive agreement to acquire six Bally Total Fitness and Sports Club of Canada fitness clubs in Toronto from Bally Total Fitness Holdings Corp. Financial terms of the transaction, completion of which is subject to customary closing conditions including lease negotiations, were not
disclosed. Falconhead Capital acquired a majority stake in Extreme Fitness in June 2006.
Founded in 1995, Extreme Fitness currently has six fitness clubs in the Greater Toronto Area and approximately 45,000 members. The six fitness clubs Extreme Fitness is acquiring will double the number of Extreme Fitness facilities in Greater Toronto and increase total Extreme Fitness memberships by more than 30 percent, to approximately 60,000. The facilities to be acquired are the Sports Club of Canada’s locations known as The Dunfield, The Delisle and The Wellington; and The Bally Total Fitness locations known as Bloor Street, The Interchange and The Cedarbrae.
David S. Moross, chairman and chief executive officer of Falconhead Capital, said: “This transaction is another major step in our effort to establish Extreme Fitness as the leading fitness club operator serving the Greater Toronto Area. In the ten months since our initial investment in the company, we have brought in new senior-level operating talent to help grow the Extreme Fitness brand, launched new marketing programs, recruited new members, and explored new growth opportunities. In the months ahead, we will continue to look for ways to grow Extreme Fitness both organically and through further selected acquisitions.”
Extreme Fitness gyms offer cardio and free-weight equipment, personal training, group fitness classes and pool facilities as well as daycare, nutrition and food and retail services. The company’s premium facilities, award-winning club designs and cutting-edge equipment led the National Post, in 2005, to call Extreme Fitness “dollar for dollar, the city’s best gym.”
Extreme Fitness plans to invest significant amounts in the newly acquired fitness clubs to upgrade their facilities, add state-of-the-art equipment, and ensure that they meet the company’s high quality and member-experience standards. Mr. Moross said; “Extreme Fitness has based its growth and success over the past twelve years on delivering a consistently high level of quality and value and a great member experience. We look forward to welcoming these six new fitness clubs and their members into the Extreme Fitness ‘family’ as we continue to expand the business and to build Extreme Fitness’s value, brand and presence in the Greater Toronto Area.”
Falconhead Capital, LLC (www.falconheadcapital.com), is a private equity firm established in 1998 to provide investors with significant long-term capital appreciation by investing globally in consumer-focused businesses in the leisure, lifestyle, recreation and related categories. In addition to Extreme Fitness, Falconhead Capital's current and prior portfolio investments include, among others, Growing Family, Inc., Escort, Inc., National Powersport Auctions, Premier Salons International, Maritime Telecommunications Network, and ESPN Classic Europe.