Life Fitness, Inventor of the World's First Power-Driven Exercise Bike, Acquired for $490 Million by KPS Capital Partners

On May 15, 2019, VCBeat (WeChat official account: vcbeat) learned that KPS Capital Partners had acquired Brunswick Corporation’s fitness business, including the “Life Fitness” brand, for $490 million. The transaction was scheduled to be completed in the second quarter of 2019. Following the divestiture of its fitness business, Brunswick Corporation would shift its focus to the marine industry.

Brunswick Corporation was founded in 1845. Life Fitness, a subsidiary of the Brunswick Group, is headquartered in Chicago, which is also home to its global R&D center with an investment exceeding 100 million. Additionally, Life Fitness operates nine offices worldwide.

Life Fitness invented the world’s first power exercise bike. As a leading global brand in high-end fitness equipment, Life Fitness currently offers more than 400 products and is the preferred fitness brand for commercial clients and home users worldwide.

Just days before the acquisition, Life Fitness launched its new product—Life Fitness Media—on May 1. This new offering will leverage its installed base of cardio equipment to deliver valuable content to the thousands of fitness and health-conscious consumers who work out on Life Fitness machines every day.

Jay Bernstein, a partner at KPS, stated, “We are delighted to invest in the fitness business of Life Fitness, a globally leading brand. Life Fitness operates the world’s largest equipment manufacturing base, with approximately 2 million units of cardiovascular and strength-training equipment installed worldwide, serving over 60 million users globally. We look forward to collaborating with Jason Worthy and the Life Fitness team to further build upon the company’s advanced design and innovative product development systems. KPS is committed to providing new growth opportunities for Life Fitness. We are highly confident that Life Fitness will thrive as an independent company.”

Jason Worthy, President of Life Fitness, stated, “We are very much looking forward to partnering with KPS. KPS recognizes our brand value, our iconic status in the fitness industry, and our potential for future growth. We will work closely with KPS to develop a strategic plan aimed at inspiring healthy lifestyles and delivering the highest-quality solutions and services to people.”

KPS is a private equity firm with approximately $5.1 billion in assets under management. The portfolio companies of KPS Funds currently generate annual revenues of approximately $5.8 billion. The company operates 99 manufacturing facilities across 27 countries and employs nearly 21,000 people. For over two decades, KPS partners have delivered capital appreciation through controlling equity investments across various industries, including basic materials, branded consumer goods, healthcare and luxury, automotive components, and capital goods. By partnering with exceptional management teams, KPS structurally enhances its portfolio to create value for businesses.

(Compiled by Song Chenchen)