Nautilus Inc. said a deal to sell some of its Schwinn Fitness and StairMaster assets to Fit Dragon International Ltd. for $12.3 million has closed. The deal gives Fit Dragon the right to license indoor cycling products of the Schwinn Fitness brand to commercial businesses.

Nautilus retains certain rights to the Schwinn brand and will continue to market Schwinn fitness products to consumers through both retail and direct-to-consumer outlets.

Under the terms of the deal, Nautilus received $7.9 million. It will receive another $2 million within 60 days. Fit Dragon assumes $1.4 million in liabilities.

Nautilus is entitled to certain royalties from Fit Dragon sales of Schwinn and StairMaster products. The company also retains the right to sell certain StairMaster products in retail and direct-to-consumer markets.

Nautilus said in August that it was looking to sell its commercial business, where it sells products to customers such as health clubs and hotels. The division’s losses in 2008 jumped from $1.1 million to $7.2 million as the company discounted products to clear out inventory.

The company also announced it will receive a $12.1 million federal tax refund this month.