Sports Club Pays $17 Million for Racquetball World
Dow Jones
Sports Club Co. said Monday that it acquired Racquetball World health and fitness clubs in Fullerton, Santa Ana, Fountain Valley and Canoga Park for $17 million.
Los Angeles-based Sports Club, which operates 14 upscale health and fitness clubs under the Sports Club and Spectrum names, said $10 million of the purchase price was funded by an affiliate of Millennium LP.
Millennium acquired property underlying two of the clubs, which it will lease to the company for $1 million per year.
The company said it provided $6.5 million through issuing the company’s common stock. Of that amount, $5 million, or 625,000 shares, was sold to Millennium Entertainment Partners and the balance was issued to the sellers.
