Key Takeaways
Life Time Group Holdings Inc. announced it will repurchase 2.2 million of its shares for $62.7 million, part of a larger block sale by major stockholders.
"The Company intends to fund the Share Repurchase with cash on hand," Life Time said in a press release.
The company agreed to buy back 2,192,500 shares at $28.60 each. In a related transaction, an affiliate of Atairos Group will purchase 8,770,000 shares at the same price from stockholders including affiliates of Leonard Green & Partners, TPG Inc., and Partners Group.
The $313.5 million total in share transactions provides a partial exit for early investors while introducing Atairos as a significant new shareholder. The buyback, funded from cash, shows management's confidence following a strong first quarter.
The share repurchase is part of a program approved by Life Time's board in February 2026. Following the sales, ownership stakes for Leonard Green & Partners, TPG Inc., and Partners Group will be reduced to approximately 8.5%, 6.1%, and 1.3%, respectively.
The move comes just after Life Time reported first-quarter results that surpassed analyst expectations. The company posted an adjusted EPS of 42 cents against a 37-cent consensus and raised its full-year 2026 revenue forecast to a range of $3.32 billion to $3.35 billion.
Despite the bullish buyback signal and strong earnings, shares were down 1.1% to $26 in pre-market trading. The buyback price of $28.60 represents a premium to the recent trading price. The company is on track to open 12 to 14 new clubs this year.
The repurchase reduces the number of shares outstanding, which should boost earnings per share, while the large purchase by Atairos could be seen as a vote of confidence in the company's long-term strategy. Investors will watch the integration of the new major shareholder and progress on the company's expansion plans.
This article is for informational purposes only and does not constitute investment advice.
