Nautilus acquires Octane Fitness from North Castle Partners

Leading global fitness equipment supplier Nautilus, Inc. has closed on a definitive purchase agreement to acquire Octane Fitness, LLC, acquiring 100% of the capital stock of OF Holdings, Inc., Octane's parent corporation, from North Castle Partners, a private equity firm, and other stockholders.

The purchase price of approximately US$115 million, subject to working capital and other adjustments, was funded with a combination of cash on hand and proceeds of a new US$80 million term loan.

Minnesota-based Octane is a leader in Zero Impact Training with a line of fitness equipment focused on specialty and commercial channels.

Industry veterans Dennis Lee and Tim Porth founded Octane in 2001, emphasising product innovation and service excellence, expanding the brand's assortment from a single elliptical machine to a portfolio of other uniquely differentiated products including the Zero Runner and XT-One cross trainer.

During the current financial year, Octane is expected to generate sales of approximately $65 million.

Explaining the acquisition, Nautilus Chief Executive Bruce M. Cazenave stated “the acquisition of Octane Fitness is a significant milestone for Nautilus and will meaningfully accelerate our strategic growth initiatives, including extending into higher price point products, penetrating new channels of distribution, and expanding access in international markets.

“Our team has undertaken a rigorous and disciplined external search for a strategic acquisition over the last 18 months and we are extremely pleased that these efforts have resulted in finding such a strong synergistic and cultural fit with a profitable company like Octane.

“This acquisition is consistent with our capital allocation strategy focused on sustainable profitable growth and creation of long-term shareholder value. W

“We are also very excited to have Dennis and Tim join our management team and look forward to partnering with them to continue to grow the Octane brand as well as to benefit from their fitness and management expertise."

Based in Vancouver, Washington, USA Nautilus, Inc. is a global fitness products company providing innovative, quality solutions to help people achieve a healthy lifestyle.

Its brand portfolio includes Nautilus®, Bowflex®, TreadClimber®, Schwinn®, Schwinn Fitness™ and Universal®, Nautilus markets innovative fitness products through Direct and Retail channels.

In Australia, Nautilus products are distributed by The Fitness Generation.

Octane is an international fitness products company focused on reinventing zero-impact cardiovascular exercise. The Company has perfected the elliptical machine, introduced a new category with the xRide® recumbent elliptical, designed strength-infused cardio with the unique CROSS CiRCUIT®, created exercise in a new direction with the LateralX®, reinvented running with the Zero Runner®, optimized cross training with the XT-One™ that does it all and is leading smarter training with SmartLink™. Defined by standout innovations, and driven to deliver more effective, efficient and rewarding workouts, Octane provides outstanding quality and service excellence to the specialty retailer, health club and consumer markets. 

For more information about Nautilus products click here to contact The Fitness Generation via their entry in the Australasian Leisure Management Supplier Directory.

Top image shows Octane's Zero Runner.

13th October 2015 - THE FITNESS GENERATION ANNOUNCED AS NEW AUSTRALIAN DISTRIBUTOR FOR VASA PRODUCTS

12th October 2010 - NAUTILUS COMPLETES SALE OF STAIRMASTER & SCHWINN BRANDS