Feb 20, 2008 2:26 PM
Nautilus Finds Buyer for Apparel Line
VANCOUVER, WA -- Nautilus Inc. has agreed to sell its Pearl iZumi apparel and footwear segment to Shimano American Corp. for $69.5 million, the company announced yesterday.
The transaction value is comprised of $65.3 million in cash and the assumption of $4.2 million in long-term debt, and is subject to adjustment for net working capital. The transaction is expected to close by March 31, and is contingent upon normal regulatory approval and customary closing conditions.
“We believe this divestiture is in the best interest of shareholders by providing liquidity and keeping our organization focused on restoring profitability to our global fitness business,” says Bob Falcone, president and CEO of Nautilus Inc.
Shimano American Corp. is a division of cycling and fishing equipment provider Shimano Inc.
Nautilus announced in October 2007 that its apparel business, which it acquired in 2005, would be offered for sale.
This move is just the latest for Nautilus’ new board, elected in December by shareholders and now led by Edward Bramson of Sherborne Investors, the largest shareholder group in Nautilus. The board also recently cancelled a planned purchase of one of its Chinese manufacturing plants, announced plans to consolidate direct sales call centers serving North America and halted production of two of its most popular products: the Treadclimber TC916 and the MyStride EV916 elliptical.
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