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01.18.02
Direct Focus Announces acquisition of Stairmaster
Direct Focus Announces acquisition of Stairmaster
Direct Focus Announces acquisition of Stairmaster
VANCOUVER, WA – January 18, 2002 – Direct Focus, Inc. (Nasdaq: DFXI), a leading marketing company for fitness and healthy lifestyle products, announced today that it was the highest bidder to acquire substantially all of the assets of StairMaster Sports/Medical, Inc. (“StairMaster”) through a bankruptcy auction in the U.S. Bankruptcy Court for the Western District of Washington.
Under the terms of the bid, Direct Focus will pay approximately $25 million in cash for StairMaster and expects to close the transaction in the first quarter of 2002, subject to final auction approval by the Court. Based on the preliminary analysis, StairMaster’s operations are expected to contribute over $40 million to annual sales and be accretive to earnings in 2002.
“We are very pleased with our auction bid,” said Brian Cook, CEO of Direct Focus. “The anticipated acquisition would strengthen our position as a leader in the worldwide fitness market. StairMaster would bring us a strong product line of commercial cardiovascular equipment, complementary retail products and enhanced manufacturing capabilities. We also gain more great brand names in the fitness area, StairMaster and Quinton, that add to our powerful combination of Bowflex, Nautilus, and Schwinn brands.”
“At the end of 2001, we had cash and short term investments in excess of $50 million. We believe this acquisition is an excellent use of our financial and management resources, and offers significant growth opportunities.”
About Direct Focus, Inc.
Direct Focus is a marketing company for fitness and healthy lifestyle products with direct, retail, and commercial sales channels worldwide. The Company currently markets its Bowflex line of home fitness equipment and Nautilus Sleep Systems directly to consumers, using an effective combination of television advertising, 800-call centers and Web sites. The Company sells its Schwinn Fitness products, under the Schwinn and Trimline brand names, and its Nautilus consumer fitness products through retail athletic stores. In addition, Direct Focus sells its Nautilus commercial fitness equipment directly to health clubs and other institutions. The Company is headquartered in Vancouver, Washington. Direct Focus is located on the Web at www.directfocusinc.com.
About StairMaster
Based in Kirkland, Washington, StairMaster is a leading manufacturer of fitness equipment, addressing the needs of a diverse array of customers. The company offers a family of fitness products, including stairclimbers, elliptical striding systems, treadmills, exercise bikes, Crossrobicsâ trainers, and strength equipment, as well as group exercise programs like STOMPTM. StairMaster has a long history in sports medicine and is committed to helping people get healthy, stay healthy, control weight, live longer and have fun while exercising. For more information, see www.stairmaster.com.
This press release contains forward-looking statements relating to anticipated sales and the development of Direct Focus' products and services, including statements regarding its Nautilus and Schwinn businesses. Factors that could affect Direct Focus' actual results include its reliance on a limited product line, fluctuations in advertising rates, market acceptance of its existing and future products, growth management challenges, and general economic conditions. A more detailed description of certain factors that could affect actual results include, but are not limited to, those discussed in Direct Focus' annual report on Form 10-K for the fiscal year ended December 31, 2000.
Under the terms of the bid, Direct Focus will pay approximately $25 million in cash for StairMaster and expects to close the transaction in the first quarter of 2002, subject to final auction approval by the Court. Based on the preliminary analysis, StairMaster’s operations are expected to contribute over $40 million to annual sales and be accretive to earnings in 2002.
“We are very pleased with our auction bid,” said Brian Cook, CEO of Direct Focus. “The anticipated acquisition would strengthen our position as a leader in the worldwide fitness market. StairMaster would bring us a strong product line of commercial cardiovascular equipment, complementary retail products and enhanced manufacturing capabilities. We also gain more great brand names in the fitness area, StairMaster and Quinton, that add to our powerful combination of Bowflex, Nautilus, and Schwinn brands.”
“At the end of 2001, we had cash and short term investments in excess of $50 million. We believe this acquisition is an excellent use of our financial and management resources, and offers significant growth opportunities.”
About Direct Focus, Inc.
Direct Focus is a marketing company for fitness and healthy lifestyle products with direct, retail, and commercial sales channels worldwide. The Company currently markets its Bowflex line of home fitness equipment and Nautilus Sleep Systems directly to consumers, using an effective combination of television advertising, 800-call centers and Web sites. The Company sells its Schwinn Fitness products, under the Schwinn and Trimline brand names, and its Nautilus consumer fitness products through retail athletic stores. In addition, Direct Focus sells its Nautilus commercial fitness equipment directly to health clubs and other institutions. The Company is headquartered in Vancouver, Washington. Direct Focus is located on the Web at www.directfocusinc.com.
About StairMaster
Based in Kirkland, Washington, StairMaster is a leading manufacturer of fitness equipment, addressing the needs of a diverse array of customers. The company offers a family of fitness products, including stairclimbers, elliptical striding systems, treadmills, exercise bikes, Crossrobicsâ trainers, and strength equipment, as well as group exercise programs like STOMPTM. StairMaster has a long history in sports medicine and is committed to helping people get healthy, stay healthy, control weight, live longer and have fun while exercising. For more information, see www.stairmaster.com.
This press release contains forward-looking statements relating to anticipated sales and the development of Direct Focus' products and services, including statements regarding its Nautilus and Schwinn businesses. Factors that could affect Direct Focus' actual results include its reliance on a limited product line, fluctuations in advertising rates, market acceptance of its existing and future products, growth management challenges, and general economic conditions. A more detailed description of certain factors that could affect actual results include, but are not limited to, those discussed in Direct Focus' annual report on Form 10-K for the fiscal year ended December 31, 2000.