Creating America's Largest Worksite Health, Wellness and Fitness Company
MINNEAPOLIS, Aug. 26 /PRNewswire-FirstCall/ -- Health Fitness Corporation
(OTC Bulletin Board: HFIT), today announced it has signed an agreement to
acquire the business assets of the Health & Fitness Services Division (HFS
Division) of Johnson & Johnson Health Care Systems Inc. (JJHCS) for an
undisclosed purchase price.
Assets to be acquired by Health Fitness Corporation consist primarily of
client contracts, proprietary wellness, lifestyle and health promotion
programs and other health and wellness services of the HFS Division. Johnson
& Johnson Health Care Systems will retain its Integrated Behavioral Solutions
business unit, and will license certain Behavioral Solutions methodologies to
Health Fitness Corporation for use in its business. As part of the
transaction, HFC will enter into a multi-year management contract with another
subsidiary of Johnson & Johnson under which HFC will manage 30 Johnson &
Johnson affiliate sites, making J&J and its affiliates HFC's largest client.
As a result of this acquisition, Health Fitness Corporation will have the
largest market share and geographical presence in the industry, and will be
well positioned to continue serving all of its existing clients together with
those of the HFS Division, and to build new business. The closing is subject
to certain conditions that the parties are endeavoring to satisfy within the
next 45 to 60 days.
The HFS Division of Johnson & Johnson Health Care Systems has been serving
clients since 1986, providing corporate fitness and wellness services and
programs to companies across the United States and Canada and in Latin
America. Services include: health and fitness center management, consulting,
occupational health services, health risk assessment programs, wellness,
fitness, injury prevention and treatment programs and data analysis services.
Currently, the HFS Division manages approximately 190 health fitness centers
throughout the U.S.
Health Fitness Corporation plans to finance its acquisition of the HFS
Division primarily with a bank term loan; supplemented with venture financing.
"This transaction will make Health Fitness Corporation the leader in the
worksite wellness and corporate fitness industry," said Jerry Noyce, Health
Fitness Corporation CEO and president. "Driving corporate health and wellness
needs are a number of widely publicized health concerns in the U.S. related to
unhealthy lifestyles, including tobacco use, poor diet, and sedentary habits
which lead to overweight, obesity, heart disease and diabetes. As companies
seek relief from their rising health care premiums and medical costs, they
increasingly look to their health and wellness program providers to deliver a
more complete range of health enhancement offerings. We are tremendously
excited about the opportunity to broaden our program offerings by integrating
the Health & Fitness Services division of Johnson & Johnson Health Care
Services into Health Fitness Corporation. Employers want programs that
produce quantifiable results. We have a greater opportunity to impact those
trends by combining our existing program offerings with those we are
acquiring, and delivering superior services to the worksite."
About Health Fitness Corporation
Health Fitness Corporation is the leading provider of results-oriented
fitness, assessment, wellness, and occupational health services to
corporations, hospitals, universities and communities. HFC has been serving
clients since 1975 and manages 200 sites across the U.S. and Canada. For more
information about Health Fitness Corporation, go to http://www.hfit.com .
This press release contains forward-looking statements within the meaning
of federal securities laws. These statements include statements regarding
intent, belief or current expectations of Health Fitness Corporation and its
management. These forward-looking statements are not guarantees of future
performance and involve a number of risks and uncertainties that may cause
Health Fitness' actual results to differ materially from the results discussed
in these statements. Please refer to Management's Discussion and Analysis
contained within the Company's Annual Report on Form 10-K for the year ended
December 31, 2002 and the Company's Quarterly Report on Form 10-Q for the
quarter ended June 30, 2003.
Health Fitnesss CEO Jerry Noyce is available for phone interviews and can
be contacted through Geri Martin, Vice President of Marketing, at
952-897-5245.
SOURCE Health Fitness Corporation
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Related links:
http://www.hfit.com
Company News On-Call:
http://www.prnewswire.com/comp/000921.html
CONTACT:
Geri Martin, Vice President of Marketing of
Health Fitness Corporation, +1-952-897-5245, or gmartin@hfit.com
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