Nautilus closes sale of select Schwinn and StairMaster assets
Nautilus (NYSE: NLS) said it completed the sale and licensing of certain assets of its commercial business to Xiamen World Gear Sports Goods, an affiliate and permitted assignee of Fit Dragon International.
It received a cash payment of $7.9 million at closing and expects to receive approximately $2.0 million in additional cash payments within 60 days and another $1.0 million over the next three years.
The sale included certain assets of the StairMaster and Schwinn commercial product lines, including the licensing of indoor cycling products of the Schwinn brand for use in the commercial channel, which primarily consists of health clubs.
Nautilus said it 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.
In addition, Nautilus is entitled to receive certain royalties based on World Gear's post-closing sales of Schwinn commercial indoor cycling and StairMaster products.
Nautilus noted that it is still working with Robert W. Baird & Co. to divest its remaining commercial assets, including Nautilus-branded strength and cardio lines and the manufacturing plant in Virginia.
Also, Nautilus said a federal income tax refund of approximately $12.1 million, which it previously expected on March 31, is now expected prior to Jan. 31.
To read more details on the sale in a Dec. 18, 2009, SNEWS story, “Fit Dragon unveiled as Land America taking over Nautilus commercial as Core Fitness,” click here.
--Compiled by Wendy Geister
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