Brunswick Corp. is selling off its Life Fitness division to KPS Capital Partners for about $490 million in cash.
The sale gives New York City-based KPS Capital Partners, a private equity firm, possession of Brunswick's Life Fitness home and commercial fitness equipment brands, which also includes Cybex, Hammer Strength and Indoor Cycling Group. It also focuses the Mettawa-based Brunswick on its marine-based product line, from boat brands such as Bayliner and Sea Ray to boat engines, parts and technology.
"With the sale of the fitness business, we sharpen our focus on Brunswick's unique and formidable marine platform," Brunswick CEO David Foulkes said in a statement Monday. "Brunswick is exceptionally positioned as a leader in the marine industry, and we are excited about the bright future ahead of us."
The marine products line brought in more than $4 billion annual revenue in 2018, according to the company.
Foulkes said the company had looked at a number of options, including spinning off the fitness line, but found there was strong interest "from a number of parties" to sell.
"We concluded this sale is the best outcome for Brunswick and our shareholders," he said "With some of the strongest brands and most accomplished people in the industry, the Fitness business is well positioned to succeed."
The sale is expected to close during the second quarter, the company said.