Nautilus Inc. announced its plan to pursue efforts to find a potential buyer for Octane Fitness to focus solely on the home fitness equipment market.
“Our decision to explore the potential sale of Octane Fitness is as a result of our long-term strategic planning process and a conclusion to refocus more resources on what we do best: deliver best-in-class home fitness products and connected fitness experiences,” said Jim Barr, CEO of Nautilus, Inc.
The company has retained investment banker, William Blair, as its advisor for the potential transaction.
Nautilus Inc.’s brands include Bowflex, Nautilus, Schwinn, and Octane Fitness.
Nautilus acquired Octane Fitness, which serves the commercial fitness space, in 2015. The Octane Fitness brand is known for its innovation around low-impact cardio products, including the traditional elliptical machine, along with the creation of new categories of exercise, including the xRide recumbent elliptical, the LateralX elliptical, and the Zero Runner specialized cardio machine. In the first quarter, sales for the brand declined as gym closures had begun to negatively affect sales of commercial-grade equipment. In 2019, Nautilus recognized a non-cash goodwill and intangible asset impairment charge of $72.0 million primarily related to the goodwill and indefinite-lived Octane Fitness brand name.
Photo courtesy Octane Fitness