Direct Focus to buy StairMaster assets for $25 mln
VANCOUVER, Wash., Jan 18 (Reuters) - Direct Focus (NasdaqNM:DFXI - news), a fitness and health products marketer, on Friday said it would buy the assets of bankrupt fitness equipment maker StairMaster Sports/Medical for about $25 million to add cardiovascular equipment to its fitness lines.
I was just sending you a short version of the same news.
That's why dfxi has been selling off: a lot of investors don't respond well to acquisitions.
What do you think of this one?
I think I"ll wait and see if dfxi sells off some more and then buy back the shares I got stopped out of at 34 (about 1/3 my position: the other shares don't have shop losses on them.)
Freeus
Vancouver, Washington-based Direct Focus, which markets the Bow Flex and Nautilus fitness gear, said it was the highest bidder for substantially all of the assets of StairMaster through a bankruptcy auction in U.S. Bankruptcy Court for the Western District of Washington.
Direct Focus said it expects to close the deal in the first quarter, subject to final auction approval by the court. StairMaster filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in August.
Based on a preliminary analysis, StairMaster's operations are expected to contribute more than $40 million to annual sales and be accretive to earnings this year, Direct Focus said.
``StairMaster would bring us a strong product line of commercial cardiovascular equipment, complementary retail products and enhanced manufacturing capabilities,'' said Brian Cook, chief executive of Direct Focus.
Direct Focus has been on the acquisition trail. In September, a bankruptcy court approved its $65 million cash acquisition of the fitness equipment division of bicycle maker Schwinn/GT.
Shares of Direct Focus closed at $32.95 on the Nasdaq on Thursday. |
