Life Time Fitness, Inc. to Leonard Green Partners

Fitness & Wellness/Mar 2015/Guggenheim, Wells Fargo Securities

Deal Information

Target

Life Time Fitness, Inc.

Acquiror

Leonard Green Partners

Sector

Fitness & Wellness

Target Type

Public

Acquiror Type

Financial

Advisors

Guggenheim, Wells Fargo Securities

Enterprise Value

EV / LTM Sales

EV / LTM EBITDA

10.3x

EV / Fwd EBITDA

Comparable transactions cited by the advisor, excluding the subject transaction.

EV/LTM EBITDA selected range: 8.5x - 10.0x

17 comps


	Feb 2006	Crown Sports plc	LA Fitness/MidOcean Partners	-	-	-	-
-	Dec 2005	Equinox Holdings, Inc.	The Related Companies L.P.	-	-	-	-
	Sep 2005	Fitness First Ltd	BC Partners Ltd.	-	-	-	-
	May 2005	24 Hour Fitness Worldwide Inc.	Forstmann Little & Co.	-	-	-	-
	Dec 2014	PetSmart, Inc.	BC Partners Ltd.	-	-	-	-
	Jul 2014	Family Dollar Stores, Inc.	Dollar Tree, Inc.	-	-	-	-
	May 2014	Darden Restaurants, Inc./Red Lobster	Golden Gate Capital	-	-	-	-
-	Oct 2013	General Parts International, Inc.	Advance Auto Parts, Inc.	-	-	-	-
	Jun 2012	Savers, Inc.	Leonard Green and TPG	-	-	-	-
	Jun 2012	Party City Holdings Inc.	Thomas H. Lee Partners, L.P.	-	-	-	-
-	May 2012	P.F. Chang's China Bistro, Inc.	Centerbridge Capital Partners II, L.P.	-	-	-	-
	May 2011	Academy Sports + Outdoors	KKR & Co. L.P.	-	-	-	-
	Dec 2010	Jo-Ann Stores Inc.	Leonard Green	-	-	-	-
	Aug 2014	Sequoia Golf Holdings, LLC	ClubCorp Holdings, Inc.	-	-	-	-
	Sep 2013	MTR Gaming Group, Inc.	Eldorado Resorts, Inc.	-	-	-	-
	Dec 2012	Ameristar Casinos, Inc.	Pinnacle Entertainment, Inc.	-	-	-	-
	May 2012	Peninsula Gaming, LLC	Boyd Gaming Corp.	-	-	-	-
		Mean			-	-	-
		Median			-	-	-

Discount rate and terminal value assumptions the advisor selected for its discounted cash flow analysis.

WACC: 7.5% – 8.5%
Terminal method: Exit multiple
Terminal assumption: 8.0x – 10.0x (Terminal EV/LTM EBITDA)
Forecast basis: Seven-year financial projections as provided by Life Time's senior management
Forecast period: Seven-year projection horizon

WACC: 7.75% – 8.75%
Terminal method: Exit multiple
Terminal assumption: 8.5x – 9.5x (FY2021 EBITDA)
Forecast basis: Management Forecasts (Life Time management-provided financial forecast)
Forecast period: last nine months of fiscal year ending December 31, 2015 through full fiscal year ending… more
last nine months of fiscal year ending December 31, 2015 through full fiscal year ending December 31, 2021

Advisor	WACC	Terminal method	Terminal assumption	Forecast basis	Forecast period	Filing
Guggenheim	7.5% – 8.5%	Exit multiple	8.0x – 10.0x (Terminal EV/LTM EBITDA)	Seven-year financial projections as provided by Life Time's senior management	Seven-year projection horizon	Open
Wells Fargo Securities	7.75% – 8.75%	Exit multiple	8.5x – 9.5x (FY2021 EBITDA)	Management Forecasts (Life Time management-provided financial forecast)	last nine months of fiscal year ending December 31, 2015 through full fiscal year ending… more last nine months of fiscal year ending December 31, 2015 through full fiscal year ending December 31, 2021	Open