January 4, 2016 - Nautilus, Inc. (NLS) today announced that on December 31, 2015 it entered into and closed on a definitive purchase agreement to acquire Octane Fitness, LLC (“Octane”), a leading fitness products company through the purchase of 100% of the capital stock of OF Holdings, Inc., Octane’s parent corporation, from North Castle Partners, a private equity firm, and other stockholders. The purchase price of approximately $115 million, subject to working capital and other adjustments, was funded with a combination of cash on hand and proceeds of a new $80 million term loan.
Octane, based in Brooklyn Park, Minnesota, is a leader in Zero Impact Training with a line of fitness equipment focused on specialty and commercial channels. Industry veterans Dennis Lee and Tim Porth founded Octane in 2001, emphasizing product innovation and service excellence, expanding the brand’s assortment from a single elliptical machine to a portfolio of other uniquely differentiated products including the Zero Runner and XT-One cross trainer. During 2015, Octane is expected to generate sales of approximately $65 million.