Bally's Acquires Crunch Fitness Centers

According to the Wall Street Journal, Bally Total Fitness Holding Corp. has agreed to buy Crunch Fitness centers for $90 million in cash and stock, uniting the country's biggest gym chain with its more fashionable rival, according to company executives. This deal signals growing consolidation in the health-club industry as small regional players are swallowed by national chains. By acquiring Crunch, Chicago-based Bally gains one of the industry's most glamorous brands, known for its young, urban clientele and offbeat exercise classes such as "Gospel Moves" and "Abs, Thighs & Gossip." New York-based Crunch would keep its name after the acquisition and plans to more than double in size to 40 locations, from 19 currently, in the next five years.

The deal is part of Bally Chief Executive Lee Hillman's plan to create a dominant nationwide health-club chain and revive the (so 70's) Bally brand.

*Bally operates about 400 clubs with four million members. The company recently purchased the Sports Clubs of Canada in Toronto as well as a chain of clubs in San Francisco.

To expand its lead, Mr. Hillman is extending Bally's will create spinoff products such as apparel and nutritional foods.

Stephanie Oakes is a fitness correspondent for Discovery Health Channel, a contributing editor for USA Weekend Magazine and the LA Times, and appears on NBC's 'Today in New York'. She can be reached at soakes@beststuff.com.