Nautilus Inc. sold a Virginia warehouse and manufacturing operation for $2.1 million, the company disclosed in a filing with the Securities and Exchange Commission.
The fitness equipment company sold the plant Aug. 19 to Quinton Commercial Fitness LLC, an affiliate of California-based Med-Fit Systems Inc.
Nautilus in February sold equipment and other assets from inside the Independence, Va., plant to Med-Fit for $2.8 million. Med-Fit was also granted a licensing agreement to sell and market certain cardio equipment to commercial businesses using the Nautilus and Nautilus One trademarks through Dec. 31, 2013.
As part of the deal, Nautilus agreed to lease the factory to Med-Fit, with an option to buy the plant that was to expire on Aug. 31. Had Med-Fit and Quinton decided not to buy the plant, the companies would have paid Nautilus $40,000 in monthly rent through Dec. 31, 2012.
The transactions were part of Nautilus's plan, first announced a year ago, to sell its struggling commercial business, in which it sold fitness equipment to hotels and health clubs, to focus more on direct-to-consumer and retail channels.
