Nautilus selling Izumi to Shimano

BROOMFIELD – Fitness company Nautilus Inc. (NYSE: NLS) has agreed to sell its Pearl Izumi apparel and footwear segment to Shimano American Corp., a division of cycling and fishing equipment provider Shimano Inc.

Pearl Izumi USA Inc. will become a wholly owned subsidiary of Shimano’s U.S. operations and will continue to operate from its facility in Broomfield with its current management team.

The deal is valued at $69.5 million and is comprised of $65.3 million in cash and the assumption of $4.2 million in long-term debt, and is subject to adjustment for net working capital. The transaction is expected to close by March 31.

The deal includes Peal Izumi operations in Germany, Spain and the Netherlands.

“We believe this divestiture is in the best interest of shareholders by providing liquidity and keeping our organization focused on restoring profitability to our global fitness business,´ said Bob Falcone, president and chief executive of Vancouver, Wash.-based Nautilus. “Pearl Izumi is an excellent brand of apparel and footwear for cycling and running. We are pleased to have found a strategic buyer in Shimano that values the brand as well as our talented apparel and footwear staff.”

Nautilus announced in October 2007 that its apparel business would be offered for sale. Nautilus is being represented by Wachovia Securities.

Nautilus has operations in Louisville for product development, sales and administrative support. In December, Nautilus sold its 93,743-square-foot building in the Colorado Technology Center for $6.3 million to a private investment group called 1886 Prairie Way LLC.

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