Nautilus, Inc. has completed the sale and licensing of certain assets of its commercial business to Xiamen World Gear Sports Goods Co., Ltd.
World Gear is an affiliate and permitted assignee of Fit Dragon. The sale included certain assets of the StairMaster and Schwinn commercial product lines, including the licensing of indoor cycling products of the Schwinn® brand for use in the commercial channel, which primarily consists of health clubs.
Under the terms of the asset purchase agreements, the company received a cash payment of approximately $7.9 million at closing and expects to receive approximately $2.0 million in additional cash payments within sixty days of closing and another $1.0 million over the next three years. Also, the company is entitled to receive certain royalties based on World Gear's post-closing sales of Schwinn® and StairMaster® products.
The company said it had previously announced its intention to divest itself of its commercial business to focus on its branded consumer retail and direct businesses.
The company also announced that a federal income tax refund of approximately $12.1 million which it previously expected to receive by March 31, 2010 is now expected to be received earlier, prior to Jan. 31, 2010.