Brunswick Corp., Lake Forest, Illinois, announced an agreement to purchase Indoor Cycling Group (ICG), Nuremberg, Germany, on Thursday in a transaction that is anticipated to be approved in the third quarter. Terms of the transaction were not disclosed.
ICG is a supplier of indoor cycling equipment and has supplied Life Fitness' existing group cycling bike for the past five years. ICG becomes the latest acquisition to join Brunswick's Life Fitness, Rosemont, Illinois, division. Brunswick acquired Cybex for $195 million in January and acquired SCIFIT Systems Inc. in July 2015.
The acquisition of ICG will further diversify the Life Fitness product offering and augment Brunswick's group exercise category, according to the announcement. Life Fitness and ICG have had a "strong relationship" over the last five years, Life Fitness president Chris Clawson said in a statement.
"With ICG's innovative technology, expertise in cycling and talented team, we will be well-positioned to advance in the indoor cycling and group exercise categories," Clawson said. "Through this relationship we know that ICG's culture of innovation and customer-focused approach are a great fit for our team. We look forward to having the ICG group join the Life Fitness family."
ICG was founded in 1995 and supplies indoor cycling bikes through direct and distributor channels. Bernd Puerschel, founder and CEO, ICG will remain in his position after the acquisition is completed and report to Clawson. Puerschel worked in the North American fitness industry in 1994 where he was inspired by the engineering presence of a powerboat exiting the docks in Fort Lauderdale, Florida, according to ICG. He returned to Germany within months of that Fort Lauderdale trip after seeing the emerging indoor cycling concept in America to become Germany's only dedicated manufacturer of indoor cycles.
"We're thrilled to join the Life Fitness family and lead the effort to grow the business' cycling and group exercise offering," Bernd Puerschel, founder and CEO, ICG, said in a statement. "The Life Fitness family will be a great, natural fit for our team, and we're eager to keep our efforts focused on further evolving our products and technologies, which, when grouped with Life Fitness' existing products, will create an unparalleled group exercise portfolio."
The ICG product line will benefit from Life Fitness' expansive global distribution network, serving more than 120 countries, Clawson noted.
"ICG is highly regarded in our industry," Clawson said. "We're eager to join it with our existing group exercise products such as Life Fitness SYNRGY360, Row GX Trainer and the Hammer Strength rigs and racks to provide a robust product portfolio for our global customers."
Brunswick also has invested in Life Fitness' manufacturing capacity in the last year. A $4 million, 50,000-square-foot expansion at the Life Fitness factory in Ramsey, Minnesota, was completed in March. In June, Life Fitness broke ground on a $22.85 million expansion project at the Cybex factory in Owatonna, Minnesota.
Brunswick reported its second quarter financial results Thursday morning. Come back to clubindustry.com later today for a recap of the results.