With support from management, Nautilus, Inc. announced that its Board of Directors had launched a review of strategic alternatives, which could include the sale of the company, to identify opportunities to accelerate digital growth under its previously announced North Star plan and enhance shareholder value.
“We have made tremendous progress executing our North Star strategy and transforming Nautilus from a product-led hardware company to a consumer-led, digitally connected company,” said Anne Saunders, chairman of the board. “Given the dynamic market environment and growth of the home fitness sector, as well as the potential we see to accelerate North Star, the Board felt the time was right to review strategic options.”
CEO Jim Barr said, “With a portfolio of innovative products and leading brands, and a wide and growing omni-channel distribution network, Nautilus is well-positioned to deliver long-term growth and profitability. Further, we continue to expand our digital fitness platform, JRNY, which exceeded 360,000 members as of June 30, 2022. Regardless of the outcome of this process, the future is bright for Nautilus. Our recent investments have allowed us to reach more of our target customers, grow our member base, add new retailer partners, and expand our supply chain capacity. Given the state of the at-home fitness ecosystem, we believe the timing is right to comprehensively assess any opportunities that may accelerate our transformation and enhance value for our shareholders while also benefitting our customers, employees, and vendors.”
The Board hired Evercore as a financial advisor to assist in the process. It did not set a timetable to conclude its review or result in a transaction or other strategic change. Nautilus said it does not intend to comment regarding developments in the process unless it determines that further disclosure is warranted.
Photo courtesy Nautilus
