Brunswick Corporation has added another company to its Life Fitness portfolio.
Brunswick announced Wednesday that it had acquired SCIFIT Systems, Inc., a leading provider of exercise equipment tailored to the needs of the growing number of active aging seniors as well as the medical wellness and rehabilitation fitness segments.
This transaction will expand Life Fitness' product portfolio and position it to better address these emerging wellness and fitness categories which represent a new, adjacent market for the division, the company said. Terms of the transaction were not disclosed. SCIFIT's 2014 revenues were approximately $17 million.
"Active aging and senior wellness offer growth opportunities as the significant Baby Boomer population is staying active and healthier longer with the help of tailored fitness and wellness products, including those offered by SCIFIT," explained Brunswick Chairman and Chief Executive Officer Dusty McCoy. "Already the leader in cardiovascular and strength equipment, Life Fitness has been seeking avenues to broaden its served markets and product portfolio, to strengthen its capabilities and to more fully participate in attractive opportunities that offer growth. We believe SCIFIT is an excellent addition to our fitness operations."
The active aging market is growing by the day, according to Brunswick President and Chief Operating Officer Mark Schwabero. "Each day in the U.S., 10,000 Boomers reach retirement age, with no less than 20 percent of those people exercising three or more times a week, which is a third higher than the previous generation."
To meet this heightened interest in wellness, the nearly 60,000 facilities that are largely geared to senior living in the U.S. are increasing their spending on fitness and wellness, including installing, adding or refreshing exercise equipment. Most of these facility managers expect to increase their spending in this area in the near future, according to Brunswick research.
"Investment in fitness equipment will increase as these facilities respond to the next generation of residents and their preference towards active lifestyles," Schwabero continued. "We believe that a blend of SCIFIT and Life Fitness, with their complementary product portfolios and combined industry knowledge and leadership, will be well-positioned to meet the needs of the active aging population."
"With a more comprehensive product line-up embracing SCIFIT's innovative products and expertise, we will be better able to provide products to support the rapidly growing senior population," said Chris Clawson, president of Life Fitness. "Life Fitness will now be able to better equip facilities from retirement communities and assisted living centers to nursing homes, long-term care environments and rehabilitation centers with fitness products tailored for the facility's users."
Clawson added that Life Fitness' global distribution will extend opportunities for SCIFIT, and Life Fitness' biomechanics and research and development know-how will ensure that the entire, blended product line-up remains robust and attuned to market trends and demands.
SCIFIT was founded in 1987 and is based in Tulsa, Okla. The acquisition is expected to have a minimal impact upon Brunswick's 2015 earnings.