IRVINE, CA (BRAIN)—Shimano has purchased Dash America, Pearl Izumi’s parent company, from Nautilus. Pearl Izumi becomes a wholly owned subsidiary of Shimano’s U.S. operations, and will continue to operate from its facilities in Broomfield, Colorado and Kirchzarten, Germany.
The Vancouver, Washington-headquartered fitness products company Nautilus said that the deal value of $69.5 million is comprised of $65.3 million in cash and the assumption of $4.2 million in long-term debt, and is subject to adjustment for net working capital.
The transaction is expected to close by March 31 and would be subject to normal regulatory approval and customary closing conditions.
“The acquisition brings together two companies started by Japanese families who share a passion for cycling,” said David Pfeiffer, Shimano American Corporation’s president. “Both have strong research and development backgrounds, offer industry leading innovations, and share an obsession with quality and performance. We’ll continue to build the respective brands and remain dedicated to the healthy independent dealer networks we’ve both enjoyed.”
Pfeiffer also noted that Pearl Izumi would be maintained as a stand-alone company with its own management team. As part of a broad dual brand strategy, Shimano will continue to offer its branded apparel and cycling footwear along with the Pearl Izumi apparel and cycling footwear in all markets, Pfeiffer said.
“The entire team at Pearl Izumi USA and Europe are excited about opportunities and benefits we gain in becoming part of Shimano,” said Juergen Eckmann, Pearl Izumi’s president. “Shimano provides knowledge and expertise which will make our brand stronger and we in turn have a great deal of experience in performance apparel, fabric technologies and run footwear that Shimano did not previously possess.”
Shimano’s acquisition includes Pearl Izumi’s facility in Kirchzarten, Germany, and the rights to Pearl Izumi sales and distribution throughout North and South America, Europe, Australia and select other countries. Pfeiffer notes the purchase does not include sales and distribution rights of Pearl Izumi branded products in Japan and most of Asia.
"We believe this divestiture is in the best interest of shareholders by providing liquidity and keeping our organization focused on restoring profitability to our global fitness business," said Bob Falcone, president and chief executive officer of Nautilus. "Pearl Izumi is an excellent brand of apparel and footwear for cycling and running. We are pleased to have found a strategic buyer in Shimano that values the brand as well as our talented apparel and footwear staff."
Nautilus announced in October 2007 that its apparel business would be offered for sale. The company acquired Pearl Izumi USA in 2005.
For more on this story, be sure to read the March 15 issue of Bicycle Retailer & Industry News.
—Matt Wiebe, Jason Norman