Johnson Health Tech Retail, Inc., the U.S.-based retail subsidiary of Taiwan-based Johnson Health Tech, Co., Ltd, reported it completed the acquisition of BowFlex for $37.5 million, as adjusted under the terms of the Asset Purchase Agreement approved by The U.S. Bankruptcy Court last week.
Johnson Health Tech Retail purchased substantially all the assets of Bowflex in a bankruptcy auction, including the BowFlex, Schwinn and JRNY brands, along with existing finished goods and parts inventory. The Court officially approved the sale on April 15 and closed on April 22.
Under the final terms of its winning bid, Johnson Health Tech Retail will acquire a limited list of liabilities of Bowflex, and Bowflex is expected to use the purchase proceeds to repay its senior and trade creditors and its remaining employees, as required by applicable law. Other than the select liabilities that Johnson Health Tech Retail assumed, the company will not take any other prior or existing liabilities of Bowflex.
“The strong BowFlex consumer brands will be a fantastic complement to our existing retail portfolio,” said the CEO of Johnson Health Tech, Inc., Jason Lo. “This investment will allow us to offer a more diverse, holistic product range to the consumer market.”
Johnson Health Tech Retail reportedly intends to fold the BowFlex and Schwinn operations into its North American sporting goods/e-commerce group. The company said BowFlex will complement the team and continue offering solutions to its at-home customers. The integration process is underway.
Image courtesy BowFlex
