McCown De Leeuw Recaps Fitness Company

New York-based buyout firm McCown De Leeuw & Co. earlier this month led a $905 million private placement to finance the expansion of Fitness Holdings Worldwide. Fitness Holdings Worldwide is the holding company for what is now the second largest fitness club chain in the world.

The placement, which was arranged by Berenson Minella & Co. of New York, saw McCown De Leeuw invest $140 in common stock and $60 million in convertible preferred stock. Fitness Holdings raised $120 million in subordinated debt, while the balance of the round came through a bank loan arranged by Chase Manhattan.

Proceeds from the round will be used to acquire Q Clubs, an operator of 18 fitness centers in the United States and to expand the company’s footprint in Europe and the Asia Pacific.

Berenson Minella Vice President Fred Buffone said the company likely will go public in the next 12 to 24 months.