Fitness company Nautilus, Inc., said in the future, it will focus its resources on its branded consumer businesses. Accordingly, the company is actively seeking buyers for substantially all of the assets, liabilities and ongoing operations of its commercial business. The company said this is a further step in its restructuring plan of improving its cost structure and focusing on the consumer market through the direct and retail businesses.


The company announced in August 2009 that it was making a strategic change to focus its efforts on a consumer business model and, as a result, would begin exploring strategic alternatives for its commercial business. After discussions with potential acquirers for the entire commercial business, the company believes that its shareholders will benefit from the orderly disposal of assets associated with the commercial business either by selling the entire commercial business as one entity or selling individual assets.


Assets of the company’s commercial business include a manufacturing facility and three warehouses in Virginia; the StairMaster cardio brand and related stepper and StepMill lines; the commercial indoor cycling line including the newly-launched Authentic Cycling bikes; and commercial strength and cardio equipment including the Nautilus ONE strength line.


“We believe this divestiture is in the best interest of our shareholders and will enable us to improve margins, utilize capital more efficiently, and focus our organization on the branded consumer fitness business where we see superior growth opportunities,” stated Edward Bramson, chairman and CEO of Nautilus, Inc.