Direct Focus, Inc. Completes Acquisition of Nautilus (Dollar amounts in U.S.
currency)
VANCOUVER, WASHINGTON--Direct Focus, Inc. (Toronto:DFX), a direct
marketing company, has finalized the acquisition of substantially
all the assets of Nautilus International, Inc. from Delta Woodside
Industries, Inc. (NYSE:DLW).
With the acquisition completed, Direct Focus said that it plans to
extend the Nautilus brand name into broader markets.
"This acquisition opens up a vast new opportunity to fuel future
sales growth," said Brian Cook, president and chief executive
officer of Direct Focus. "We will continue to build the brand
awareness of the Nautilus name, which is well known in the fitness
industry and leverage the name in our direct marketing business
with the addition of new products."
"We intend to aggressively expand Nautilus' core business of
selling fitness equipment to health clubs, health care and other
commercial facilities," Cook said. In addition, the company
intends to add a new line of products carrying the Nautilus name
for home fitness use. The company expects to start adding the new
home fitness products in late 1999 and plans to sell the majority
of them through the Internet and specialty retail, while others
will be sold through direct marketing. "Our existing line of
Bowflex fitness equipment is primarily aimed at the home user and
we have a proven track record of successfully penetrating this
market," he said.
Direct Focus paid $16 million in cash and assumed $2.8 million in
liabilities, subject to the final adjustments of working capital
items, for substantially all of the assets of Nautilus, including
existing manufacturing, warehousing and office facilities located
in Virginia, manufacturing equipment, intellectual property, the
Nautilus name, inventory and accounts receivable. Cook pointed out
that Nautilus' existing manufacturing facility offers an immediate
benefit to the company. With a distribution center on the East
Coast, Direct Focus can deliver its current products to customers
in the eastern half of the United States faster and at a lower
cost.
Direct Focus, Inc. currently markets two lines of products
-- Bowflex home fitness equipment and Instant Comfort sleep
systems
-- directly to customers via advertising on national cable
television networks, printed media and the world wide web. For
year ended December 31, 1998, Direct Focus generated sales of
$57.3 million, up 188 percent from fiscal 1997.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Direct Focus, Inc.
Rod W. Rice
(360) 418-6178 |
