Brunswick Corporation (NYSE:BC) announced recently that it has acquired Cybex International Inc., a leading maker of commercial fitness equipment, for $195 million, subject to a working capital adjustment. Cybex will join Brunswick’s Life Fitness Division’s portfolio of leading brands.
Founded in 1970, Cybex offers a full line of cardiovascular and strength products largely serving the commercial fitness market. Its cardio portfolio includes treadmills and exercise bikes, plus the Cybex Arc Trainer, a unique and popular cross-trainer. Cybex’s comprehensive strength category includes selectorized, plate-loaded, functional and free weight equipment. Cybex’s 2015 sales were estimated at about $169 million.
“With the addition of Cybex, we will expand our stable of brands serving the complete spectrum of the commercial fitness market, including health clubs, hospitality, education and military, as well as consumers, with a wide array of equipment and features that include a complete suite of services and support,” explained Brunswick President and Chief Operating Officer Mark Schwabero. “We believe the combination of these premium brands and industry leaders will be well positioned to serve the global fitness market.”
“The Life Fitness – Cybex combination enables us to approach the market with a broader and deeper product portfolio, and improve our ability to address the faster growing segments of the fitness market,” Schwabero added. “With the addition of Cybex’s manufacturing footprint, we can meet current and future demand and achieve manufacturing cost reduction objectives more effectively and efficiently. This combination provides cost synergies and scale as well as manufacturing and engineering capabilities to further improve our competitiveness and leadership position within the fitness industry.”
Schwabero further added, “Life Fitness’ strong international distribution channels will open new territories and offer opportunities for growth with our deeper and more extensive product portfolio. Fueling these efforts to execute our strategy will be a deep bench of talented people throughout the combined organization.
“Along with our recent addition of SCIFIT, which serves the active aging and rehabilitation markets, and our industry leading Hammer Strength brand, Life Fitness continues to offer the broadest spectrum of fitness equipment in the industry,” Schwabero concluded.
“As we recently shared with the investment community, we have a three-year plan aimed at growing both Brunswick’s marine and fitness businesses,” said Dusty McCoy, Brunswick chairman and chief executive officer. “The plan is focused on expanding our fitness segment and our marine parts and accessories businesses, areas we believe offer particularly good opportunities for future growth. Cybex provides a strategic and important step forward on this path to growth.”
Schwabero noted that the Cybex acquisition is consistent with Brunswick’s plan to double revenue of its Life Fitness Division by 2020. These recently completed acquisitions, along with the recent launch of InMovement, complement a relentless focus on new products and services within Life Fitness’ core cardio and strength equipment businesses. Brunswick believes all these efforts, along with potential further acquisitions, are integral to achieving the growth objectives the corporation set for its fitness business.
Schwabero noted, “There are favorable macro trends that position the fitness industry for long-term growth and Life Fitness’ leading industry position provides a firm foundation from which to move forward with its strong, well-known brands, reputation for innovation and new products and solid customer relationships. The addition of Cybex will further solidify and extend these market differentiators.”