Fitness company Tivity Health to be bought by Stone Point Capital for $2 bln

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Fitness company Tivity Health to be bought by Stone Point Capital for  bln


United States one dollar bills are put in packaging bands during production at the Bureau of Engraving and Printing in Washington November 14, 2014. REUTERS/Gary Cameron/File Photo

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April 5 (Reuters) – Fitness company Tivity Health (TVTY.O) said on Tuesday it had agreed to be bought and taken private by investment firm Stone Point Capital for $2 billion in cash.

Tivity said its stockholders would receive $32.50 per share, which is a near 1% premium to the stock’s closing price of $32.25 on Monday.

Tivity’s shares rose 0.5% to $32.42 in morning trade.

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The company owns SilverSneakers, a fitness program offered in-person and virtually for people eligible for Medicare – the U.S. government’s medical insurance program for people age 65 and older and the disabled.

SilverSneakers was founded in 1992 and Tivity has, in recent months, been trying to provide more virtual offerings, making ‘live with instructor’ classes available for members wishing to maintain physical activity from the comfort of their homes.

Tivity said it initiated a review of strategic alternatives after receiving an unsolicited proposal from Stone Point and was in discussions with numerous potential buyers, before ultimately deciding to be acquired by the private equity firm.

“Stone Point recognizes the value of our brands, our well-known senior fitness and health improvement platform,” said Richard Ashworth, Chief Executive Officer of Tivity Health.

He would remain the CEO of Tivity Health after the completion of the deal, expected in or prior to the third quarter, the company said.

Lazard was the exclusive financial adviser to Tivity Health while Truist Securities served as exclusive financial adviser to Stone Point on the deal.

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Reporting by Amruta Khandekar; Editing by Amy Caren Daniel and Krishna Chandra Eluri

Our Standards: The Thomson Reuters Trust Principles.



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