February 19, 2008
Fitness leader Nautilus Inc has agreed to sell its Pearl iZumi apparel and footwear segment to Shimano American Corporation, a division of cycling and fishing equipment provider Shimano Inc.
The transaction value of $69.5 million 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, 2008, 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," said Bob Falcone, President and CEO of Nautilus Inc.
"Pearl iZumi is an excellent brand of apparel and footwear for cycling and running. We are pleased to have found a strategic buyer in Shimano that values the brand as well as our talented apparel and footwear staff."
Nautilus announced in October 2007 that its apparel business would be offered for sale. The Company acquired Pearl iZumi USA in 2005. Nautilus is being represented by Wachovia Securities.
Nautilus Inc
Source @ Fibre2fashion
