Brunswick Corp today announced that it plans to spin off its Fitness business. The new company will be called FitnessCo for the moment and publicly traded, according to a Brunswick statement. Mark Schwabero will remain as chairman and CEO of Brunswick, while Jaime Irick will lead FitnessCo.
"Our Board of Directors and management regularly review our portfolio of businesses and brands, and after careful review, have determined that a spin-off of the Fitness business is the best option to maximise the value of both businesses," said Schwabero in a statement. "With this action, FitnessCo will be positioned to continue to grow, innovate and provide customers with high-quality solutions while also ensuring that the Marine business is best positioned to continue creating value for our shareholders.”
The Marine division had about US$3.5bn in sales last year. The company is comprised of Mercury Marine and 14 boat brands. Brunswick announced last year that it plans to sell off its Sea Ray brand.
FitnessCo will be formally named at a later date, said the statement. It will remain in commercial fitness equipment and billiards game tables and furnishings. Its brands include the Life Fitness, Hammer Strength, Cybex, Indoor Cycling Group, SCIFIT and Brunswick Billiards. FitnessCo sales were US$1.03bn in 2017.
The transaction is expected to be complete by the end of Q1 2019, subject to final approval from Brunswick's Board.