The acquisition is consistent with Brunswick's growth strategy to remix and diversify its portfolio, including plans to double Life Fitness sales by 2020. It is expected to enhance Life Fitness' commercial fitness equipment industry leadership position. The benefits are said to include cost and revenue synergy opportunities, the ability to leverage scale, manufacturing and engineering capabilities and optimize customer relationships and international distribution channels.

"The addition of Cybex to our Life Fitness family brings one of the industry's most respected fitness brands to our world-leading portfolio," said Chris Clawson, Life Fitness president.

Founded in 1970 and headquartered in Medway, Mass., Cybex offers a robust line of commercial cardiovascular and strength fitness equipment. The brand's cardio line-up includes treadmills and exercise bikes as well as the widely-acclaimed Arc Trainer. The comprehensive strength portfolio includes selectorized, plate-loaded, functional and free weight equipment. In 2015, Cybex had net sales of USDm 169, rankíng as 5th largest global manufacturer; estimated EBITDA of approximately USDm 18. Life Fitness's sales had grown by 7% (excluding impact of foreign currency translation) to 795 in 2015. In total, both companies had sales of USDm 964 last year. Almost 60% of these sales are realized in the US so far. Their combined global market share in commercial fitness equipment is approximately 25 %. For the period 2015 to 2020 revenue growth is expected at "high-single - low-double digit" numbers.

The acquisition is yet another deal in the fitness supplier market in recent months as companies seek mergers to enhance profitability and consolidate market presence. Thereby, LifeFitness itself had already bought SCIFIT in July 2015, Precor strengthened its functional fitness ambitions by buying Queenax (Dec 2015) and Nautilus acquired Octane Fitness (Jan 2016).

Source: Brunswick, Health Club Management
Pictures: Life Fitness