Brunswick Corporation’s Ill-Advised Spinoff of Life Fitness Brands

Brunswick has one of the greatest legacies in the history of American business. How many companies out there have track records dating back to before the Civil War, as Brunswick does with its inception back in 1845?

The obvious downside with a business like Brunswick is that a majority of its product sales are cyclical. Manufacturing and boats are great, except during a recession. That can be tolerable, as the average years and good years can provide high enough profits to roll the muck that is encountered during the down years.

My fear is that, upon seeing the announcement that Brunswick is spinning off its fitness business, which includes the brands Life Fitness, Hammer Strength, and Cybex, Brunswick is forgetting about the importance of diversification that is necessary to weather the inevitable recessions.

Most analysts seem to approve of the 2019 scheduled spinoff of the fitness business, saying things like: Read the rest of this article!