The US Bankruptcy Court for the District of New Jersey has approved the sale of the acquired assets of Bowflex, Inc. under the terms of the previously announced stalking horse asset purchase agreement between Bowflex and Johnson Health Tech Retail, Inc., the parent company of the Matrix fitness equipment brand.
After a long struggle, BowFlex, formerly Nautilus, gave up in March and began the search for a new owner. Due to the post-Covid pandemic environment and ongoing macroeconomic headwinds, the company had determined after a comprehensive strategic review that this would be the best way to proceed. The company had undergone a repositioning just last year, changing its name from Nautilus to BowFlex to put more emphasis on its strongest brand. As a result, Johnson Health Tech was set as the preferred bidder for the acquisition. Other interested parties had the opportunity to submit competing bids, but this was not the case. Under the terms of the purchase agreement, Johnson Health Tech is now to acquire substantially all of the assets of BowFlex Inc. for $37.5 million in cash, less certain adjustments.
“We are pleased that the Court has approved this transaction with Johnson Health Tech,” said Jim Barr, BowFlex’s Chief Executive Officer. “Johnson Health Tech is among the world’s largest and fastest-growing fitness equipment manufacturers and home to some of the most respected brands in the fitness industry, making them the right organization to lead BowFlex into its next chapter.”
The transaction is subject to customary closing conditions and is expected to close on or around April 22, 2024.
