After making a lot of progress in sales and profits, Nautilus is taking over Octane Fitness, a complementary firm in the fitness equipment sector, buying its parent company, OF Holdings, for $115 million from North Castle Partners and other shareholders. The purchase price values Octane at about 10.5 times its operating earnings before amortization (Ebitda).

Octane, which had sales of $65 million in 2015, has been growing at compound average annual rates of 11 percent in sales and 17 percent in Ebitda in recent years. While taking a loan of $80 million to help finance the takeover, Nautilus says it will be accretive to its own profits as of this year.

The acquisition should help Nautilus to develop its international sales, which are now equivalent to only about 2 percent of its turnover, after the first year of ownership. About 10 percent of Octane's sales come from Europe, the Middle East and Africa, and 13 percent from Asia-Pacific and Latin America.

Octane should also help Nautilus to acquire a stronger presence in sporting goods retail, particularly in the higher-end specialty channel where Octane does more than 60 percent of its business. The inverse is true for Nautilus, which gets about one-third of its turnover from sporting goods retailers.

Dennis Lee and Tim Park, who founded Octane in 2001, will remain with the company, based in Brooklyn Park, Minnesota. Octane stands for “Zero Impact Training,” offering a full line of cardiovascular fitness equipment products.

For the first nine months of last year, Nautilus has reported a much improved net income of $17.0 million for its continuing operations as sales jumped by 26.2 percent to $226.6 million, lifted by its Bowflex Max Trainer range.