Leonard Green-backed Life Time aims for over $4 billion valuation in U.S. IPO – Reuters

(Reuters) – Life Time Group Holdings Inc, an operator of fitness centers backed by private equity firms Leonard Green & Partners and TPG, is aiming for a valuation of $4.16 billion in a U.S. initial public offering.

In its planned return to the stock market six years after it was taken private, Life Time is looking to sell 46.2 million shares priced between $18 and $21 each, a regulatory filing showed on Wednesday.

At the top end of the price range, the company would raise $970.2 million.

Founded nearly 30 years ago, the health club brand had about 1.4 million members as of July 31, its filing showed. It has over 150 centers across the United States and Canada.

Life Time’s financials took a major hit from the COVID-19 pandemic as it was forced to close all of its centers in March last year.

In response to the health crisis, the company turned to its digital offering and provided weekly, live-streamed classes across exercise, nutrition, meditation and more.

Life Time, which did not collect any fees from members while its centers were closed, incurred a net loss of $360 million in 2020 compared to a profit of $30 million a year earlier.

The Chanhassen, Minnesota-based company was taken private by Leonard Green & Partners and TPG in a $4 billion deal in 2015.

Goldman Sachs, Morgan Stanley and BofA Securities are the lead underwriters for the offering, after which Life Time expects to list on the New York Stock Exchange under the ticker symbol “LTH”.

Reporting by Sohini Podder in Bengaluru; Editing by Maju Samuel and Shailesh Kuber

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