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LifeCore to operate Diamondback Fitness

Published January 23, 2012

VISTA, CA (BRAIN) Jan 23, 12:42 MT Raleigh America has signed a multi-year global licensing agreement with LifeCore Fitness whereby it’s transferring the operation of its Diamondback Fitness division to the Vista, California, company.

Brian Davidson, general manager for Diamondback Fitness, who remains with the company, said the deal will bring more operating efficiency to both businesses. He said neither company was in financial distress, but that it “made sense as you look at the business, how can this operate more successfully? It was a really good fit.”

“If you’re a Diamondback or LifeCore dealer, it’s business as usual,” Davidson said. “Product doesn’t change, pricing doesn’t change, support programs, warranty, nothing changes.”

Davidson becomes director of sales and marketing for both LifeCore and Diamondback Fitness moving forward. He will work out of an office in Seattle.

“LifeCore was our partner of choice,” said Steve Meineke, president of Raleigh America, in a press release. “Under the direction of Roger and Traci Bates, Lifecore Fitness has a strong management team and solid reputation in the industry for providing a broad range of products, programs and customer support services. This new partnership positions well the Diamondback Fitness brand for an exciting new era by providing dealers with new and unique products that will build market share and expand customer offerings.”

Davidson was unsure how many of Diamondback Fitness’ employees in Kent, Washington, would make the move to Vista, California. He said staff was shared among the bicycle and fitness divisions at Raleigh America and as a result, doesn’t believe the move will result in many job losses.

LifeCore Fitness president Roger Bates said in a statement that the licensing deal will improve sourcing and operational efficiencies. “We believe in the Diamondback brand and its complementary product range and price offerings,” he said. “The licensing agreement will help us be a better supplier to our customers and provide greater opportunities for dealers to increase profitability.”

LifeCore Fitness is a privately held fitness company founded in 2004. Owned by the husband and wife team of Roger and Traci Bates, it started as a specialty fitness retailer in 1995. It specializes in compact cardio fitness equipment with a product line that includes stationary bikes, rowers and ellipticals for homes and light institutional use. It sells mostly through specialty fitness retailers and some online stores including Costco, Amazon and Sears. The company employs 12 out of its Vista, California, headquarters.

Topics associated with this article: Mergers/Acquisitions

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