Nautilus, Inc. has acquired certain assets and assumed certain liabilities of Winnipeg-based Belko Canada for approximately $5.5 million in cash. Belko Canada has served as the exclusive Canadian distributor of Bowflex and Schwinn Fitness branded products since 1996, including operating a call center in Winnipeg to support Bowflex direct sales.
Don Carson, founder of Belko Canada, will serve as the Nautilus vice president of specialty, commercial and direct sales for Canada.
“We are looking forward to expanding the reach of our Nautilus and StairMaster brands in the specialty and commercial markets, and intensifying our marketing of Bowflex and Schwinn Fitness brands through the direct and retail markets across Canada,” said Gregg Hammann, chairman and chief executive officer of Nautilus, Inc. “By further leveraging an organization we know very well, we are positioning ourselves to offer a full line of quality fitness products wherever Canadian consumers shop and exercise.”
“I'm looking forward to working with the company's leadership to expand our distribution into the specialty and commercial channels, in addition to direct and retail channels,” said Carson, a Winnipeg native who founded Belko Canada in 1984.
In preparation for growth across multiple business channels, Nautilus will relocate the Belko Canada operation into a larger leased facility in the second half of 2005. The organization will cease distributing other fitness equipment brands. In addition to direct sales through www.bowflex.ca or 800-216-9029, Nautilus also markets quality fitness products through a number of retail and specialty fitness locations throughout Canada.
The acquisition is expected to be accretive to earnings in 2005. Nautilus will provide updated earnings guidance during its conference call following the second quarter ended June 30, 2005.
