Extreme Fitness, Inc. Enters into a Letter of Intent with GoodLife Fitness Centres Inc. and Obtains an Initial Order Under the CCAA
TORONTO, Feb. 8, 2013 /CNW/ - Extreme Fitness, Inc. ("Extreme"), a leading operator of fitness clubs in the greater Toronto area and surrounding region, has announced today that it has entered into a Letter of Intent (the "LOI") for the acquisition of all of its facilities by GoodLife Fitness Centres Inc. ("GoodLife"). GoodLife is the largest fitness company in Canada with over 300 locations across the country.
The LOI contemplates GoodLife purchasing substantially all of Extreme's assets and fitness facilities, which transaction would involve the retention of most of Extreme's staff and the continued delivery of high quality services and amenities to Extreme's membership base. In addition, upon the closing of the transaction, Extreme's members will receive the added benefit of becoming part of GoodLife's larger organization, with access to all GoodLife facilities across Canada.
The sale of assets to GoodLife is subject to certain customary conditions, including the execution of an asset purchase agreement and Court approval of the transaction. Court approval will be sought as part of proceedings which have been initiated by Extreme under the Companies' Creditors Arrangement Act (the "CCAA") pursuant to an Initial Order issued by the Court on February 7, 2013 (the "Initial Order"). FTI Consulting Canada Inc. has been appointed as the monitor of Extreme (the "Monitor") in Extreme's CCAA proceedings (the "CCAA Process").
During the CCAA Process, Extreme will continue to operate in the usual and ordinary course and without interruption and will fulfill all salary and benefit obligations to its employees. Extreme has undertaken the CCAA Process to assist in the proposed sale of Extreme's business to GoodLife with minimal disruption to its employees, members and other stakeholders.
All inquiries regarding the CCAA Process should be directed to the Monitor (toll free at 1-855-649-8062 or locally at 416-649-8062 or by email at ExtremeFitness@fticonsulting.com). Information about the CCAA Process will be available on the Monitor's website at http://cfcanada.fticonsulting.com/ExtremeFitness
About Extreme Fitness, Inc.
Founded in 1995, Extreme has grown to be the operator of 13 fitness facilities in the greater Toronto area and surrounding region. The Extreme brand and fitness facilities have long been known to inspire members who enjoy an active and healthy lifestyle, as well as to inspire others to make positive lifestyle changes. Extreme's culture is all about quality, results and a passion for exceeding its members' expectations. Additional information is available at www.extremefitness.ca
About GoodLife Fitness Centres Inc.
Founded in 1979, GoodLife is the largest fitness company in Canada with approximately 300 clubs from coast-to-coast. With over 750,000 members, GoodLife is helping to transform the health and wellness of 1 in 45 Canadians every day. With the vision of giving every Canadian the opportunity to live a fit and healthy good life, David Patchell-Evans, Founder & CEO, strives to develop innovative partnerships and collaborations in all areas of health, fitness and wellness and continues to play a significant role in the healthcare system in Canada. GoodLife has achieved Platinum Status Canada's 50 Best Managed Companies, as well as Platinum Level Canada's 10 Most Admired Corporate Cultures. Additional information is available at www.goodlifefitness.com
SOURCE: Extreme Fitness, Inc.For further information:
FTI Consulting Canada Inc.
Public Relations Director, GoodLife Fitness
519-661-0190, ext. 302