Why Walmart’s $1.6B acquisition of Planet Fitness Equipment will help Walmart expand its fitness business
Walmart (WMT) said it will buy the company’s gym equipment business for about $1 billion and will sell it to Walmart.
Walmart’s purchase of Planet Gym Equipment, based in Canada, will help expand its gym business, the company said in a news release.
The acquisition is expected to close in the fourth quarter.
The company, based near Toronto, said in an earlier filing with the Securities and Exchange Commission that it will pay $8.25 a share for the $1,637 million of the deal.
Walton acquired Planet Fitness in December 2013 for $2.5 billion.
Walmart has said it plans to sell the gym business.
Planet Fitness, which provides workout equipment, is best known for its workout programs.
Walmart’s fitness equipment business includes clothing, footwear, apparel and accessories, including workout clothing and shoes.