Equinox Fitness Yields Healthy Investment Gain for North Castle Partners and J.W. Childs Associates

Equinox, Greenwich, CT - December 5, 2005

North Castle Partners (NCP) and J.W. Childs Associates (JWC) today announced the signing of the definitive agreement to sell Equinox Holdings, Inc., a leading operator of upscale fitness clubs in New York, Chicago, Los Angeles, San Francisco and South Florida. The Related Companies, a prominent New York City-based real estate developer, is the buyer, along with Equinox management. The transaction, valued at $505 million, is expected to close in the first quarter of 2006.

NCP and JWC acquired Equinox in December 2000, after NCP sourced and initiated the transaction as part of their focus on the healthy living and aging sector. At that time, the fitness operator was primarily a New York City-based business. Over the past five years, Equinox has been transformed into a market leading, national fitness lifestyle brand by opening new clubs - many of which have won numerous awards for their architectural design - in prime real estate locations across the country. During the term of the investment, NCP and JWC partnered with CEO Harvey Spevak and the management team to continue to build the Equinox brand, expand nationally and strengthen its infrastructure by recruiting seasoned executives in key finance and marketing roles and securing additional capital to fund the company's strategic expansion plan. Since 2000, Equinox has opened 21 clubs in four new markets, more than doubled membership, and nearly tripled revenues.

"Equinox reflects North Castle's strategy of investing in mid-sized businesses catering to consumer demand for products and services that promote healthy living," said NCP Managing Director, Douglas Lehrman. "By partnering with a talented management team, we have built Equinox into a market leading enterprise that is well-positioned to capitalize on a large and receptive market for further growth," said JWC Partner Ted Yun.

Equinox CEO and President Harvey Spevak, who has led Equinox since 1999 and has worked closely with North Castle and J.W. Childs during and since the buyout in 2000, will continue to lead the Company with the current management team and execute upon its successful vision and growth strategy.

"Our partnership with North Castle and J.W. Childs has been professionally rewarding," said Mr. Spevak. "We are very pleased to have achieved our shared goals for the business. We are also very excited to be partnering with Related and look forward to the continued profitable growth of the Company."

Mr. Spevak added: "The Related Companies shares Equinox's growth vision and will provide the resources for the business to continue to prosper." The Related Companies is a fully integrated real estate firm with divisions specializing in development, acquisitions, financial services and property management. Stephen M. Ross, founder and Chief Executive Officer of Related, became an Equinox Board member in May 2005.

Today Equinox operates 32 full-service fitness clubs and is one of the best known and highly regarded fitness lifestyle brands. The company 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. Equinox most recently opened clubs in South Beach, Florida, The Loop in Chicago, Palos Verdes, California and Westwood, California and later this year plans to open another club in the greater Los Angeles area and one in the New York City metro area.

Debevoise & Plimpton LLP, Kaye Scholer LLP and Rosen Weinhaus LLP advised North Castle, J.W. Childs and Equinox while Paul Hastings advised The Related Companies.

About North Castle Partners
North Castle Partners is a leading private equity firm focused on investments in consumer and healthcare businesses that benefit from healthy living and aging trends. Since its founding in 1997, North Castle has invested more than $1.0 billion in companies focusing on healthcare, healthy food and beverages, nutritional supplements, natural personal care products, day spas, fitness clubs and equipment, and luxury travel. The firm's portfolio includes a number of well-known brands such as Red Door Spas, Octane Fitness, Avalon Natural Products and Naked Juice.

As a result of its specialized investment focus, North Castle has developed an extensive network and knowledge base that enable it to bring a proprietary value-added approach to investments, in partnership with accomplished, entrepreneurial management teams working to build leading companies.

The sale of Equinox is NCP's fourth realization in the past 18 months. It follows NCP's recent announcement that it is selling CRC Health Group, the nation's largest provider of drug and alcohol treatment services, to Bain Capital. In November 2004 North Castle sold EAS, the preeminent branded nutritional food and beverage product company in the United States, to Abbott Laboratories, and in May 2004 completed the recapitalization of Leiner Health Products, a market leading store brand manufacturer of vitamins, nutritional supplements and over the counter drugs.

About J.W. Childs Associates
J.W. Childs Associates, L.P. ("JWC") is a leading private equity firm based in Boston, Massachusetts specializing in leveraged buyouts and recapitalizations of middle-market growth companies primarily in the consumer, specialty retail and healthcare industries. Since 1995, JWC has invested in 37 companies with a total transaction value of over $8.4 billion. JWC currently invest through J.W. Childs Equity Partners III, L.P., an investment fund with total committed capital from leading financial institutions, pension funds, insurance companies and university endowments of $1.75 billion.

About Equinox Holdings
Equinox Holdings, Inc. operates upscale, full-service fitness clubs, catering to the middle- to upper-end market segment. The company 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. Since its inception in 1991, Equinox has developed a lifestyle brand that represents service, value, quality, expertise, innovation, attention to detail, market leadership and results. For more information visit www.equinoxfitness.com.

About The Related Companies
The Related Companies, L.P., is a fully integrated real estate firm with divisions specializing in development, acquisitions, financial services and property management. As one of the nation's preeminent developers of mixed-use properties, The Related Companies was selected to develop the New York City Coliseum site at Columbus Circle. The new $2 billion complex, Time Warner Center, marks the first time a mixed-use development project in New York City has combined office, hotel, retail, residential and cultural uses. Since its founding in 1972, The Related Companies has built a team of over 1,500 professionals overseeing a real estate portfolio valued at more than $12 billion.

Contact:
Alan Oshiki
Broadgate Consultants, LLC
212-232-2222

Show all Fitness & Recreation press releases