Brunswick Corporation : Brunswick Agrees to Acquire Indoor Cycling Group
Will Provide Cornerstone to Expand Group Exercise Segment Participation
LAKE FOREST, Ill. July 28, 2016 - Brunswick Corporation (NYSE:BC) today
announced it has signed an agreement to acquire Indoor Cycling Group (ICG), a
market leader specializing in the design of indoor cycling equipment. ICG is
based in Nuremburg, Germany.
Terms of the transaction were not disclosed. ICG's 2015 revenues were
approximately €37 million ($41 million), and the transaction is subject to usual
and customary closing conditions as well as approval by the German competition
authority, which is anticipated sometime late in the third quarter. At that
time, ICG would become part of Life Fitness' global operations.
"Our vision is to build and augment our product and technology portfolio to
establish a strong leadership position in the global group exercise market,"
explained Brunswick Chairman and Chief Executive Officer Mark D. Schwabero.
"Group exercise is a growing sector of fitness and represents another important
adjacency that we have targeted to expand our fitness business.
"Blending ICG's integrated technology and programming capabilities in the indoor
cycling space, with our broader Life Fitness product assortment, is an important
component of our strategy to grow our fitness business, and consequently,
Brunswick. Additionally, we believe that Life Fitness' strong product
development and distribution capabilities will further advance ICG's position
within the group exercise and indoor cycling markets," Schwabero said.
"Our stated goal is to double the size of our Fitness operations by 2020, and we
are pursuing that goal with a growing stable of prominent brands, including Life
Fitness, Hammer Strength, Cybex and SCIFIT. Through the integration of
additional leading brands - such as ICG's Tomahawk - into our product portfolio,
we are building and strengthening our position in several market segments,"
Schwabero added.
"ICG will provide a cornerstone from which we plan to expand our presence in
group exercise," echoed Life Fitness President Chris Clawson. "We're eager to
join it with our existing group exercise products such as Life Fitness
SYNRGY360, Row GX Trainer and the Hammer Strength rigs and racks to provide a
robust product portfolio for our global customers."
Clawson said the ICG management team, staff and operations will remain largely
intact, and under the direction of founder and current Chief Executive Officer
Bernd Puerschel, who will report to Clawson.
ICG was founded in 1995. Among other attributes, ICG products are particularly
recognized for their aesthetics, design and integrated technologies, Clawson
added. ICG has exclusive rights to key technologies such as the WATTRATE(®)
Power Meter, one of the most accurate and robust power meters in the fitness
market. It also includes "Coach By Color," a highly effective and motivational
system in which the range of color covers the physiological responses to the
different types of training required to meet the demands of group-fitness-based
cycling. Such technologies and capabilities, Clawson pointed out, provide ICG
with a sustainable competitive advantage supporting the strongest product
portfolio within the group exercise cycling category.
"As the supplier of Life Fitness' existing group cycling bike, we have had a
strong relationship with ICG for the past five years. Through this relationship
we know that ICG's culture of innovation and its customer-focused approach are a
great fit for our team. We look forward to having ICG join the Life Fitness
family," Clawson concluded.
ICG will have minimal impact upon Brunswick's 2016 results.
Forward-Looking Statements
Certain statements in this news release are forward-looking as defined in the
Private Securities Litigation Reform Act of 1995. Such statements are based on
current expectations, estimates and projections about Brunswick's business.
Forward-looking statements by their nature address matters that are, to
different degrees, uncertain and often contain words such as "may," "could,"
"expect," "intend," "target," "plan," "seek," "estimate," "believe," "predict,"
"potential" or "continue." These statements are not guarantees of future
performance and involve certain risks and uncertainties that may cause actual
results to differ materially from expectations as of the date of this news
release. These risks include, but are not limited to: the effect of adverse
general economic conditions, including the amount of disposable income available
to consumers for discretionary purchases, tight consumer credit markets and the
level of consumer confidence on the demand for the Company's products and
services; negative currency trends, including shifts in exchange rates; the
ability to make targeted acquisitions and successfully integrate newly acquired
businesses; the ability of the Company to successfully implement its strategic
plan and growth initiatives; the ability of dealers and customers to secure
adequate access to financing and the Company's ability to access capital and
credit markets; the ability to maintain strong relationships with dealers,
distributors and independent boat builders; the ability to maintain effective
distribution and develop alternative distribution channels without disrupting
incumbent distribution partners; the ability to successfully manage pipeline
inventories; credit and collections risks, including the potential obligation to
repurchase dealer inventory; the risk of losing a key customer or a critical
supplier; the strength and protection of the Company's brands and other
intellectual property; the ability to absorb fixed costs in managing production
facilities; the ability to successfully manage the expansion of the Company's
manufacturing footprint; the ability to obtain components, parts and raw
materials from suppliers in a timely manner and for a reasonable price; the need
to meet pension funding obligations; uncertainties in the timing and amount of
the Company's share repurchases; the effect of higher energy and fuel costs;
competitive pricing pressures, including the impact of changing foreign currency
exchange rates, inflation and increased competition from international
competitors; the ability to develop new and innovative products at a competitive
price and in compliance with applicable laws and to maintain product quality and
service standards; the continued use of legacy information technology systems
and the risk of a failure of or attacks on the Company's information technology
systems, which could result in data breaches, lost or stolen assets or
information and associated remediation costs; competition from other leisure
pursuits that may affect the level of participation in boating and fitness
activities; the risk of product liability, warranty and other claims in
connection with the manufacture and sale of products; the ability to protect the
Company's intellectual property; the ability to respond to and minimize the
negative financial impact of legislative and regulatory developments, including
those related to environmental restrictions and remediation efforts, climate
change, healthcare costs, taxes and employment obligations; the risk of having
to record an impairment to the value of goodwill and other assets; doing
business in international locations, including risks of international political
instability, civil unrest and operations in emerging markets; the ability to
attract and retain key contributors and to successfully implement succession
plans; the effect of weather conditions on demand for marine products; and the
effect that catastrophic events, including hurricanes, floods, earthquakes and
environmental spills, may have on consumer demand and the ability to manufacture
products.
Additional risk factors are included in the Company's Annual Report on Form 10-K
for 2015. Such forward-looking statements speak only as of the date on which
they are made and Brunswick does not undertake any obligation to update any
forward-looking statements to reflect events or circumstances after the date of
this news release or for changes made to this document by wire services or
Internet service providers.
About Brunswick
Headquartered in Lake Forest, Ill., Brunswick Corporation's leading consumer
brands include Mercury and Mariner outboard engines; Mercury MerCruiser
sterndrives and inboard engines; MotorGuide trolling motors; Attwood, Garelick
and Whale marine parts and accessories; Land 'N' Sea, Kellogg Marine,
Diversified Marine, BLA and Bell RPG parts and accessories distributors;
Bayliner, Boston Whaler, Brunswick Commercial and Government Products,
Crestliner, Cypress Cay, Harris, Lowe, Lund, Meridian, Princecraft, Quicksilver,
Rayglass, Sea Ray, Thunder Jet and Uttern; Life Fitness, Hammer Strength, Cybex
and SCIFIT fitness equipment; InMovement products and services for productive
well-being; and Brunswick billiards tables, accessories and game room furniture.
For more information, visit http://www.brunswick.com.
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| Contact: Daniel Kubera |
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| Director - Media Relations and Corporate Communications |
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| Phone: 847-735-4617 |
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| Email: daniel.kubera@brunswick.com |
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Source: Brunswick Corporation via GlobeNewswire
[HUG#2031290]
Released July 28, 2016