The assets are being sold for $12.3 million. Nautilus will net $10.9 million in the transaction, with Fit Dragon assuming $1.4 million in liabilities. The transactions are scheduled to close on Dec. 30.
Nautilus had announced in August that it would be divesting itself of its commercial business and would focus on its consumer (retail and direct) business.
The sale includes the licensing of indoor cycling products of the Schwinn Fitness brand for commercial use. Nautilus will retain certain rights to the Schwinn brand and will continue to market Schwinn fitness products in the consumer market.
The Vancouver, WA-based company also will retain certain rights to sell StairMaster products in the retail and direct-to-consumer markets.
“We believe this is an important step towards our goal of focusing exclusively on our direct and retail channels,” Nautilus CEO Edward Bramson said in a statement. “The Schwinn and StairMaster brands and products have been an important part of the commercial marketplace, and we are pleased that these products will continue to be available for health clubs and fitness centers for the future. We are confident that Fit Dragon will be an excellent supplier to the commercial markets, and we will work aggressively with them to support an effective transition of our StairMaster and Schwinn indoor cycling commercial products and service.”
Nautilus also announced today that Bill McMahon has been promoted to senior vice president and general manager for the entire consumer business, reporting directly to Bramson. In addition, the company announced that Sebastien Goulet, general manager of commercial business and senior vice president of manufacturing, has left the company to pursue other opportunities.
Shares of Nautilus stock dipped to $1.99 this morning on the New York Stock Exchange. The stock had been as low as 45 cents in February.