Fitness financials: Nautilus garners $12.3 million for various commercial assets, plus GSI Commerce
Nautilus said it would sell select assets of its commercial business to Fit Dragon International Ltd. for $12.3 million, and GSI Commerce said former shareholders of Retail Convergence would sell more than 2.1 million shares of its stock.
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Nautilus garners $12.3 million for various commercial assets
Nautilus (NYSE: NLS) said it is selling select assets of its commercial business to Fit Dragon International Ltd. for $12.3 million. The company’s plan is to focus exclusively on its direct and retail division.
The deal includes the sale of certain assets of StairMaster and Schwinn Fitness, including the licensing of Schwinn Fitness indoor cycling products for use in the commercial channel, it added.
Nautilus said it would continue to market Schwinn Fitness products in the consumer channel, including both retail and direct-to-consumer.
“We are retaining certain rights of the Schwinn trademarks and remain committed to the Schwinn brand and fitness products in the consumer channel,” said CEO Edward Bramson in a statement.
Nautilus will receive a net cash payment of $10.9 million, while the buyer assumes about $1.4 million in liabilities. Nautilus will get about $7.9 million cash at closing, $2 million within 60 days and the remaining $1 million over the next three years.
The company expects to close the deal by Dec. 30.
GSI: Stock offering expected from former shareholders of recent acquisition
GSI Commerce (Nasdaq: GSIC), a provider of e-commerce and digital-marketing services to retailers and manufacturers, said former shareholders of Retail Convergence are going to sell a little more than 2.1 million shares of its stock in a registered underwritten offering.
GSI bought Retail Convergence last month for $180 million in cash and stock at closing and up to $170 million more, depending on how Retail Convergence’s web sites do under GSI’s ownership.
The offering is expected to occur by Dec. 11. GSI said it would not receive any money from the offering, and the number of shares it has outstanding won’t change.
The former Retail Convergence shareholders have already sold 1 million shares of GSI stock to a private equity fund.
–Compiled by Wendy Geister
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