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NEW YORK CITY-The Related Cos. has completed its $505-million acquisition of Equinox Holdings Inc. The firm takes title to the 32-unit fitness-club chain. Equinox's flagship 40,000-sf club and its "E", a 6,000-sf invitation-only training facility, are at located here at Related's Time Warner Center.
The firm, which began operations in 1991, offers an integrated selection of Equinox-branded programs, services and products, including strength and cardio training, group fitness classes, personal training, spa services and products, apparel and food/juice bars. Harvey Spevak will continue to lead Equinox as CEO and president and the current Equinox management team will remain intact.
A source previously told GlobeSt.com that Related and Equinox already have an Upper West Side condominium project in the works where Equinox will operate a new 35,000-sf club. Related officials said they secured a well known brand as a quality anchor tenant for key current and future developments, while Equinox will leverage Related's real estate expertise and relationships to more efficiently secure sites, reducing its site identification and club development costs.
The purchase price was in cash, less certain indebtedness and other payments required in connection with the transaction. As part of the transaction, Equinox successfully completed a cash tender offer for 98.9% of its outstanding 9% senior notes due 2009. The transaction was financed with equity and the proceeds from $290 million of 9.25% senior notes due 2012 issued by Equinox, and $115 million of discount notes due 2013 issued by Equinox's indirect parent.
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