Town Sports International agrees to buy Fitcorp health clubs in Boston
Town Sports International Holdings Inc., a New York company that operates 160 health clubs, including 25 Boston Sports Clubs in this market, said it has signed a deal to acquire Fitcorp clubs in Boston as it looks to escalate efforts to woo corporate clients.
Financial details of the transaction were not included in a Town Sports International press release. According to the release, Fitcorp owns five health clubs and four managed clubs in the Boston market. This acquisition includes the 25,000-square-foot club at the Prudential Center as well as the Boston Racquet Club.
In a statement, Town Sports International chief executive Bob Giardina said: “These clubs add a terrific presence to our already solid footprint in Boston and should also provide us with a platform to expand our corporate member base as well as expand our managed facility business. Gary Klencheski (Fitcorp chief executive and founder) and his team bring with them more than 30 years of club operating experience and have been particularly successful in developing programs that cater to corporate clients.”
Giardina added, “We have the capital to reinvest in these clubs as appropriate and are confident that our members and the Fitcorp members will benefit a great deal by the expansion of our network.”
In a separate statement, Klencheski said, “We are extremely excited to launch the new Fitcorp Corporate Fitness Division, which will expand our ability to manage private fitness centers through the delivery of high quality, state-of-the-art fitness and wellness services to corporations within the geographic market now being served by the more than 160 clubs in the TSI network.”
Town Sports International, or TSI, operates clubs in Northeast and mid-Atlantic regions.
Fitcorp was established in 1979 in Boston’s Financial District. The company focuses on providing companies, institutions, and their employees with high quality fitness and wellness services.
When the transaction is completed, something expected to happen within a month or two, Klencheski said he will head up a new division for TSI that will focus on recruiting corporate clients in TSI’s four major geographies --- Greater Boston, Greater New York, Greater Philadelphia, and Greater Washington, D.C.
For many years, Fitcorp managed health clubs for such local companies as Raytheon Co., Fidelity Investments, Gillette, and Boston Scientific Corp., the Natick medical device company.
In 2006, Fitcorp sold off that business in a transaction that included a five-year non-compete clause. Since the expiration of that noncompete clause, Fitcorp has re-entered that business.
Current corporate customers include PTC Inc., the Needham software company, and the real estate companies Boston Properties Inc. and the Flatley Cos.
“What differentiates us from competitors is that employees in our private business centers will also have access to all of TSI’s 160 clubs,” Klencheski said.
Fitcorp has about 65 full-time employees and between 150 and 200 part-time employees, he said.Chris Reidy can be reached at firstname.lastname@example.org.