The Cybex International name and brand will remain intact after its purchase Wednesday by Brunswick Corp., according to Brunswick executives who shared more details Thursday about the acquisition. The executives also noted that Brunswick would continue seeking additional acquisition opportunities.
Brunswick announced Wednesday its purchase of Cybex International, Medway, Massachusetts, for $195 million. It will move Cybex into its Life Fitness division.
"As we platform things, we will create some differentiation between the two brands but have the two brands in the market,” Mark Schwabero, president and COO of Brunswick, Lake Forest, Illinois, said in the call.
The company will differentiate the brands around platform strategy to the commercial business, including health clubs, education, hospitality and military. Schwabero said that Cybex's history of mostly club market sales provides growth opportunities for Cybex products in the hospitality, military and education markets that Life Fitness already has larger distribution into.
In addition, Cybex's business is more heavily weighted in North America while Life Fitness has a greater balance between North America and international sales, Schwabero said, which offers growth potential internationally for Cybex's products.
Last year, the company noted it planned to double its Life Fitness division business by 2020.
"Our projection is to continue to grow the combined business at a high single to low double-digit growth rate over our three-year planning period, including additional bolt-on acquisitions and adjacency growth initiatives such as active aging and InMovement," Bill Metzger, Brunswick CFO, said in the call.
Brunswick made several acquisitions in 2015 to help that cause, including a purchase of SCIFIT. However, Schwabero noted that the company knew it would take a large acquisition to meet its goal to double the business by 2020.
"So clearly, we were looking at lots of opportunities as part of our M&A process," he said. "This was one that when we looked at all of the things this brand represented, it was one we decided we wanted to continue to pursue. We are delighted to have Cybex International as part of the company."
Schwabero also noted that coming out of pre-recessionary levels, Cybex has shown mid to high single digit growth rates, growing organically without acquisitions but with some new products, most notably, the Arc Trainer.