Nautilus sells StairMaster and Schwinn Assets

US-based fitness equipment maker Nautilus, Inc. has announced that it has entered into definitive agreements for the sale of certain assets of its commercial business to Fit Dragon International, Ltd. $12.3 million.

The agreements provide for the sale of certain assets of StairMaster® and Schwinn® Fitness, including the licensing of indoor cycling products of the Schwinn® Fitness brand for use in the commercial channel. The company retains 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.

Nautilus Chief Executive Edward Bramson, explained "we believe this is an important step towards our goal of focusing exclusively on our direct and retail channels.

"We are retaining certain rights of the Schwinn® trademarks and remain committed to the Schwinn® brand and fitness products in the Consumer channel and will continue our marketing, product development, and sales efforts in these channels."

Under the terms of the agreement, Nautilus will receive a net cash payment of US$10.9 million, while the buyer assumes about US$1.4 million in liabilities. Nautilus will get about US$7.9 million cash at closing, US$2 million within 60 days and the remaining Us$1 million over the next three years. The company expects to close the deal by the end of December.

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).

27th November 2009 - NAUTILUS TO SELL COMMERCIAL BRANDS