Nautilus Completes Sale of StairMaster & Schwinn Brands

US-based fitness equipment maker Nautilus, Inc. has sold its StairMaster and Schwinn commercial to Xiamen World Gear Sports Goods Co., Ltd (World Gear).

The sale was completed based on the terms of two previously disclosed asset purchase agreements between the Nautilus and Fit Dragon International, Ltd., World Gear being an affiliate and permitted assignee of Fit Dragon.

The sale includes the StairMaster and Schwinn brands, including the licensing of indoor cycling products of the Schwinn brand for use in health clubs. However, Nautilus is retaining certain rights to the Schwinn brand and will continue to market Schwinn fitness products in the consumer channel, including both retail and direct-to-consumer.

Under the terms of the asset purchase agreements, the Company received a cash payment of approximately US $7.9 million and expects to receive approximately $3 million in additional cash payments over the next three years. In addition, the Company is entitled to receive certain royalties based on World Gear's post-closing sales of Schwinn commercial indoor cycling and StairMaster products.

Nautilus had previously announced its intention to divest itself of its commercial business in order to enable its management team to focus its resources on its branded consumer retail and direct businesses.

Nautilus products continue to be distributed by The Fitness Generation in Australia (tel: 03 9765 9999) and Elite Fitness in New Zealand (tel: 09 919 5495).

10th December 2009 - NAUTILUS SELLS STAIRMASTER AND SCHWINN ASSETS