Brunswick Corp said it has entered into a definitive agreement to sell its Fitness business to KPS Capital Partners, LP, a private investment firm, in an all-cash transaction for about $490 million. Brunswick said in a statement that, following the sale, it will “be comprised solely of its global marine portfolio.”
“With the sale of the fitness business, we sharpen our focus on Brunswick’s unique and formidable marine platform,” said David Foulkes, CEO, in the statement. “Brunswick has an impressive stable of recognized and respected brands and offers the right products and services uniquely concentrated in growing and emerging marine market segments. We are excited about the bright future ahead of us.”
Foulkes said the sale was designed to “best position the Fitness business for the future,” while maximizing shareholder value.
“As we considered avenues to separate our Fitness business, including a potential spin-off, we received strong buyer interest from a number of parties,” said Foulkes. “After thoughtful evaluation of a range of options and a robust auction process, we concluded this sale is the best outcome for Brunswick and our shareholders. We thank our Fitness employees for their many contributions to Brunswick and wish them well in the future.”
The Fitness business will be reported as a discontinued operation starting in the second quarter, matching the guidance already provided on a marine-only basis.