Brunswick Corp. (BC) announced the filing of an initial Form 10 registration statement (Form 10) with the U.S. Securities and Exchange Commission (SEC) in connection with the planned separation of the company’s Fitness division into an independent, publicly traded company, to be named Life Fitness Holdings Inc.
The filing contains important information on the planned distribution of Life Fitness shares, including an overview of the company’s operations, strategy, competitive strengths and end-markets, as well as historical financial results and details of the planned separation, among other information. The Form 10 is not yet effective and will be updated with additional information in subsequent amendments during the customary SEC review process. The separation is expected to be tax-free to Brunswick shareholders for U.S. federal income tax purposes.
“The filing of the Form 10 is an important step in the process to create two independent, market-leading companies executing distinct growth strategies in marine and fitness,” said Brunswick Chairman and Chief Executive Officer Mark Schwabero. “The separation will allow each of the Marine and the Fitness businesses to continue to grow, innovate and provide their respective customers with high-quality solutions, while ensuring that the businesses are best positioned to realize their full value.”
As announced during its recent third quarter earnings call, Brunswick’s Board of Directors has appointed Directors David Everitt and David Singer to oversee the Fitness division management team and operations along with the completion of the separation of the Fitness business.
Life Fitness
With over $1 billion in 2017 net sales, Life Fitness is a global leader in the design, manufacture and distribution of commercial cardiovascular and strength training equipment marketed under the Life Fitness, Hammer Strength, Cybex, Indoor Cycling Group and SCIFIT brands. The company will also continue to design, manufacture and distribute billiards equipment, game tables and furnishings under the Brunswick and Contender brand names.
“Life Fitness has a strong heritage as a global leader in commercial fitness, and our vision for the standalone company is to further expand our leadership position to connect the world to fitness through a seamless combination of physical and digital solutions with an industry leading combination of brands, products, market reach, operating capabilities, installed base and customer relationships,” said Jason Worthy, president of the company’s Fitness division. “Our extensive sales and distribution network, innovative culture, commitment to operational excellence and unique market insight will enable Life Fitness to continue to deliver an exceptional experience to customers, value for our fitness center partners and attractive returns for shareholders.”
Brunswick Corporation
Following the separation, Brunswick, comprised of its Marine Engine and Boat segments, will remain a global leader in recreational marine products. The Marine Engine segment, which consists of Mercury Marine, manufactures and distributes a broad range of marine propulsion systems and related parts and accessories. The Boat segment manufactures and distributes a range of recreational boats under 14 boat brand names including Boston Whaler, Sea Ray, Lund and Harris. With over $3.5 billion of 2017 net sales, the Brunswick marine portfolio will continue to drive shareholder value by delivering unique technology and solutions to boaters worldwide.
Brunswick will remain headquartered in Mettawa, IL and will continue to trade on the New York Stock Exchange under the ticker symbol BC.
Additional Information
The separation of Brunswick’s Fitness division is subject to certain conditions, including, among others, obtaining final approval by the Brunswick Board of Directors and the SEC declaring the Form 10 effective. The company is working to complete the separation process as promptly as practicable within a timeframe that maximizes value to its shareholders.
Image courtesy Life Fitness
