Nautilus Inc. has finalized a purchase agreement to acquire Octane Fitness LLC from its parent corporation, North Castle Partners, for approximately $115 million.
Based in Minnesota, Octane is a leading fitness products company focused on specialty and commercial channels. Its product portfolio includes the Zero Runner and XT-One cross trainer. The company’s 2015 sales are expected to generate $65 million.
“The acquisition of Octane Fitness is a significant milestone for Nautilus and will meaningfully accelerate our strategic growth initiatives, including extending into higher price point products, penetrating new channels of distribution and expanding access in international markets,” said Bruce M. Cazenave, CEO of Vancouver-headquartered Nautilus. “Our team has undertaken a rigorous and disciplined external search for a strategic acquisition over the last 18 months and we are extremely pleased that these efforts have resulted in finding such a strong synergistic and cultural fit with a profitable company like Octane.”
Dennis Lee and Tim Porth, who founded Octane in 2001, will now join Nautilus’ management team.
“This combination of two industry leaders provides our team members with a unique opportunity to continue to focus on our core products and channels, while benefiting from Nautilus’ added expertise and broader resources,” said Lee. “Our customers can look forward to our continued commitment to product innovation combined with sales and service excellence that has been our trademark. Our leadership team and associates look forward to taking Octane Fitness to the next level in this new chapter.”