Vancouver, Wash. — Direct Focus Inc. has completed its acquisition of substantially all of the assets of StairMaster Sports/Medical Inc. for approximately $25 million in cash. The company was the high bidder at a bankruptcy auction in the U.S. Bankruptcy Court for the Western District of Washington In January.
Based on unaudited financial information, StairMaster had revenue of approximately $70 million for the full year 2001, according to Direct Focus. During the coming months, Direct Focus plans to concentrate on StairMaster's core products, which include steppers, stepmills, treadmills and exercise bikes. Direct Focus will integrate StairMaster's core products, operations and sales organization into its existing retail and commercial business segment. StairMaster products are expected to contribute over $45 million to Direct Focus' revenue during the remainder of 2002, and to be slightly accretive to earnings for the year.
“We are very excited about the long-term potential of this acquisition. StairMaster strengthens our position as a leader in the worldwide fitness market by bringing us an exceptional product line of commercial cardiovascular equipment and complementary retail products, as well as enhanced manufacturing capabilities and international distribution,” said Brian Cook, CEO of Direct Focus. “We also gain more great brand names in the fitness area, StairMaster and Quinton, adding to our powerful combination of the Bowflex, Nautilus and Schwinn brands.”