Fitness Company Nautilus Selling All Assets of its Commercial Business

Posted September 30, 2009 8:16 pm by

Fitness company Nautilus, Inc. has decided to focus its resources on its branded consumer businesses and sell substantially all of the assets, liabilities and ongoing operations of its commercial business. Assets of the Company’s commercial business include a manufacturing facility and three warehouses in Virginia. In December 2008, Virginia Governor Kaine announced the manufacturing facility, saying Nautilus, Inc. would invest $1.7 million to expand in Grayson County and bring the site’s 60 jobs to Virginia. He said Virginia successfully competed with Oregon and China for the project, and approved $50,000 from his Opportunity Fund to assist Grayson County with the project. The Virginia Tobacco Indemnification and Community Revitalization Commission approved $100,000 in Tobacco Region Opportunity Funds for the project, and the Virginia Department of Business Assistance said it would provide training assistance through the Virginia Jobs Investment Program. Nautilus announced in August 2009 that it was making a strategic change to focus its efforts on a consumer business model and, as a result, would begin exploring strategic alternatives for its commercial business. After discussions with potential acquirers for the entire commercial business, the Company believes that its shareholders will benefit from the orderly disposal of assets associated with the commercial business either by selling the entire commercial business as one entity or selling individual assets. “We believe this divestiture is in the best interest of our shareholders and will enable us to improve margins, utilize capital more efficiently, and focus our organization on the branded consumer fitness business where we see superior growth opportunities,” stated Edward Bramson, Chairman and Chief Executive Officer of Nautilus, Inc. “Our business model and operations are now positioned to place greater emphasis on the brands in our direct-to-consumer and retail businesses and will enable us to better leverage our restructured consumer operating model.” As previously announced, the Company has engaged Robert W. Baird & Co., whom will now actively assist in the sale of the commercial business. Headquartered in Vancouver, Wash., Nautilus, Inc. (NYSE:NLS) is a global fitness products company providing innovative, quality solutions to help people achieve a healthy lifestyle.
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