Shimano bulks up with acquisition of Nautilus unit

TOKYO, Feb 20 (Reuters) - Japanese cycling and fishing gear maker Shimano Inc (7309.OS: Quote, Profile, Research, Stock Buzz) said on Wednesday it bought a unit of fitness-equipment maker Nautilus Inc (NLS.N: Quote, Profile, Research, Stock Buzz) for $69.5 million to strengthen its offering of cycling apparel and shoes.

Shimano, which makes nearly all of its sales outside Japan and is one-third owned by foreign investors, said the purchase of Pearl Izumi USA would give it sales and distribution rights for the Pearl Izumi brand in North America, Europe and Australia.

The deal does not include sales and distribution rights for Japan and most of Asia, Shimano said in a release.

Pearl Izumi, which like Shimano also draws its origins from Japan, offers a wide range of shoes, clothing and accessories for cycling enthusiasts.

Shimano said it would continue to offer its own branded apparel along with Pearl Izumi products.

Shares of Nautilus, whose brands also include Bowflex and StairMaster, have lost about 80 percent in the past year. Nautilus booked a net loss of $57.56 million in 2007.

Shimano's stock was down 3.7 percent at 4,190 yen, underperforming the benchmark Nikkei average's .N225 2 percent decline.

(Reporting by Nathan Layne; Editing by Eric Burroughs)