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Migros Teams up with Injoy Sport-Tiedje Maps out Migros Already Acquired 30% the Services of Inline

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Migros Teams up with Injoy Sport-Tiedje Maps out Migros Already Acquired 30% the Services of Inline Jan 24 Octane buy backs up European NEW! You’re reading a special issue of Fitness News Europe, an sales push at Nautilus independent business news publication for executives autilus Inc. is preparing in the international fitness Brunswick a major sales push into industry. With an online portal the European market, and a bi-monthly newsletter, snaps up Cybex which was set in mo- Fitness News Europe provides Ntion late last year and could be reliable business news and often exclusive analysis on the itness News Europe strongly supported by its acqui- fast-moving fitness market. was heading to the sition of Octane Fitness. After its vigorous sales ex- Turn to the back page for printer for this special further information about pansion in the U.S. in the last issue when Brunswick the publication, to register FCorp. announced that it was two years, the company behind for a free trial and obtain your forking out $195 million to the Bowflex, Nautilus, Schwinn subscription at a special launch Jeff Collins. buy Cybex International, as and Universal fitness equipment rate. part of its plans to double the brands has identified interna- chines. sales of its Life Fitness busi- tional development as one of the The acquisition came just as CONTENTS ness by 2020. major purposes in the $115 mil- Nautilus started to implement That probably doesn’t put lion buy of Octane Fitness. far-reaching international ex- Gear an end to Brunswick’s latest While Nautilus makes only pansion plans, to double the size Octane to support Nautilus acquisition drive, as we’re about 2% of its sales outside of of its offering with an adjusted sales push .....................p1-2 told that the company is the U.S. market, Octane Fitness range for the European market, Migros teams up with studying more than 50 com- has strongly established distri- and to establish distribution Injoy ..............................p1-9 panies. bution in Europe and some oth- across most countries in the next Matrix builds up global er international markets. It has two years. team .................................p3 Fitness takes centre stage Read the full story on established a solid brand repu- “Octane has key partnerships tation, focusing on a distinctive and infrastructure in place, in Munich .........................p3 fitnessnewseurope.com Icaros prepares takeoff ...p5 range of low-impact cardio ma- which we believe will help ac- Continued on page 2... Retail New Domyos brand manager ...........................p6 Migros teams up with Injoy Sport-Tiedje maps out Migros already acquired 30% the services of Inline. expansion ........................p7 of the company two years ago “We will continue to oper- Gyms from its owner and chief ex- ate independently but we will Health City divests French ecutive, Paul Underberg. The take advantage of each oth- clubs .................................p9 purchase of his remaining 70% er’s strengths to build up our CMG Sports Club targets stake was sealed earlier this business in German-speaking European cities ..............p10 month through Migros Freizeit countries, and to work together Deutschland, the German sub- more efficiently on projects that Other news sidiary of Migros Zürich, at an are relevant to all of us, such as Portugal association chief undisclosed price and subject to online fitness,” explains Under- {p4}, Fitspiration congress regulatory approval. berg. {p4}, Geek briefs {p5}, Sports igros, the leading A sprawling Swiss retail group, Perhaps just as importantly, Direct {p6), Argos {p6}, DW Sports {p6}, Budo & Fitness Swiss retail group, Migros is a leading player in the the chief executive adds that the {p6}, Neoness {p9), Austrian is taking part in the Swiss fitness market through agreement should give the In- consolidation of the market {p11}, Pure Gym {p11}, Migros Zürich. It runs 6 Migros line team more time to focus on Snap Fitness {p11} MEuropean fitness industry with Fitness Park clubs and another setting quality standards in the the full acquisition of Inline/ 36 Activ Fitness clubs, which to- German fitness market. “This is Injoy, a German consultancy gether have about 85,000 mem- a crucial time for the sector in Fitness News Europe is for the fitness industry and the bers. Three years ago Migros Germany,” he insists, pointing published by Zelus (France) owner of the Injoy franchise, Zürich moved into the German to the legislation adopted by the [email protected] which boasts 200 quality gyms market with another quality German government two years Editor: Barbara Smit in German-speaking countries. concept, Elements, leaning on Continued on page 9... [email protected] FITNESS NEWS Europe 1 Top Gear ... Continued from page 1 Collins says that these Combined (pro forma) projected sales 2015 celerate our growth outside the plans are broadly un- Nautilus Inc. Octane Fitnes U.S.,” says Jeff Collins, who has changed, but European $336 million $65 million would be approached in the been leading a strategic plan to investments are likely to same way in the years to come. ramp up international distri- take on another dimen- Nautilus/Octane: $401 million He is ultimately targeting an bution for the Nautilus group’s sion with the acquisition 4% equal spread of sales between brands. He was promoted as the of Octane Fitness. It has a 2% the U.S. and other markets, al- company’s vice president and European head office and though he acknowledges that general manager in charge of a warehouse in the Neth- this may take more than a few the retail market last month. erlands, dealing with years. Nautilus bought Octane from sales across Europe, the North Castle Partners, forming Middle East and Africa, Complementary ranges a company with joint pro forma while the British market 94% Apart from expansion in in- sales of about $400 million, and is covered from a sepa- ternational markets, the complementary activities in the rate subsidiary. Nautilus group points to home and commercial equip- “We have Europe cov- complementary product ment markets. ered and our sales have 94% North America ranges and distribution tar- Octane Fitness is estimated been making steady 2% Europe, Middle East and Africa gets as another part of the to have reached a turnover of progress,” said Leo 4% Asia Pacific, Latin America rationale behind Octane’s about $65 million for 2015, with Schreuders, Octane’s Source:a Nautilus Inc. acquisition. Since it pulled a share of 23% in international managing director for out of the commercial mar- markets. About 10% of the sales Europe, the Middle East sumers, it will help bring back ket four years ago, Nautilus are derived from Europe, the and Africa (excluding the U.K.). that market.” has been focusing on the re- Middle East and Africa, with an- “The biggest European markets For this purpose, the com- tail market, direct and online other 13% coming from Asia Pa- for us are the U.K., Germany and pany wants to replicate some sales with cardio equipment. cific and Latin America. Nauti- the Netherlands, and Scandina- of the strategic investments it The company wants to take lus said in an update earlier this via has been performing better has made in the North Ameri- advantage of Octane’s re- week that it expected to report and better.” can market. “We have about tri- lationships in the special- sales of about $336 million for The European team is pre- pled our investment in product ist retail market to move its 2015, up by 22%. paring for two big commer- development in the last three Nautilus and Schwinn brands Octane has achieved com- cial product launches this year, years,” Collins explains. “It all into that business. Some of pound annual growth rates of starting with the XT-One, which starts with robust consumer re- Octane’s products could be 11% in sales and 17% in EBIT- is described as “four cross search, to make sure we’re pro- marketed through the direct DA for the last three years. Its trainers in one”. Already avail- viding the right products for the channels where Nautilus is EBITDA for 2015 was estimat- able in the U.S. market, the XT- consumer.” most established, the compa- ed at $10.9 million, amounting One will be launched in Europe Nautilus put together a re- ny added. Cost savings could to an EBITDA margin of about in April. The second innovation search team that is meant to become more apparent in the 16.8% and an acquisition multi- is a running product that Octane travel around Europe in the second year, through joint ple of 10.5 times EBITDA. will bring to FIBO. coming weeks, to study con- distribution and sourcing ar- Octane Fitness derives more sumption and requirements in rangements. Adjusted product range than 60% of its sales from its terms of features, digital apps Tim Porth and Dennis Lee, When the takeover was an- commercial division and 40% or tracking. They should provide who established Octane Fit- nounced earlier this month, from specialty retail. The share detailed input for product devel- ness in 2001, are to remain Nautilus had already opened of commercial is larger in Eu- opment from the middle of the on board. Subject to adjust- talks with potential partners to rope, driven by products such as year, meaning that an expanded ments, the €115 million buy is rapidly broaden its distribution the Lateral-X, a three-dimen- range of products adjusted for to funded with cash on hand across Europe. The company sional cross trainer. the European market could start and $80 million of term debt. wants to capitalize on robust selling about one demand for the Bowflex Max Strategic investments for year later. Trainer, which is marketed as a Europe Regardless of cardio machine for a full-body The European launches of the acquisition of workout.
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