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Nautilus buys out fitness apparel brand PEARL iZUMi

17 Jun '05

4 min read

Leading lifestyle retailer Nautilus Inc announced it has agreed to acquire all of the outstanding stock of privately-owned PEARL iZUMi USA, a leading provider of high-performance fitness apparel and footwear for cyclists, runners and fitness enthusiasts, for $68-million in cash and about $6 million in assumed debt. The deal is expected to be neutral to Nautilus' earnings in 2005 and is expected to add about 6- to 8-cents to 2006 earnings per share.

Established in 1951 in Japan and first distributed in the United States in 1981, the PEARL iZUMi brand is known among fitness enthusiasts for its quality, innovation and technically superior sports apparel and footwear. The company's products are distributed through 2,600 independent bike dealers and 600 running-focused specialty retailers worldwide. PEARL iZUMi also operates nine retail outlet stores in the United States and an online store at www.pearlizumi.com.

PEARL iZUMi has increased sales 15-percent annually since 2001 as demand for high-performance fitness apparel continues to grow. In 2004, the company generated annual sales of approximately $49 million.

"We are delighted to extend our brand leadership with the addition of PEARL iZUMi and its high-quality products to our portfolio of fitness brands," said Gregg Hammann, chairman and CEO of Nautilus, Inc. "It provides another high-performance brand and creates an opportunity to leverage the PEARL iZUMi business into new categories. We are looking forward to working with the PEARL iZUMi team. Both our organizations share a culture of growth through innovation and brand development."

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