Bothell firm Quinton gets back its treadmill line

Quinton Cardiology Systems, the Bothell maker of heart monitors, has used some of its new investment cash to buy back the treadmills that made its reputation in the medical world.

The company said yesterday it will pay $1 million in cash and another $900,000 over the next two years to get back the medical-treadmill manufacturing business it sold to Stairmaster in 1999.

Quinton said it did the deal to reunite the treadmill manufacturing with its cardiac devices, and because Stairmaster's new parent, The Nautilus Group, plans to move treadmill manufacturing from Bothell to Oklahoma. In Oklahoma, Nautilus will focus more on fitness treadmills than the higher-end medically equipped treadmills that Quinton desires.

Quinton will immediately take over the medical-treadmill operations in Bothell and about 15 people who work there. The company has the cash to keep it going: It raised $26 million in May through an initial public offering (IPO).

"We're really excited about the acquisition and the possibilities it represents for our business," said John Hinson, Quinton's president. "It's a step forward."

The return of the treadmills is a source of pride at the company, where founder Wayne Quinton developed the first medical treadmills for heart-stress testing and rehabilitation in the early 1950s.

The company struggled financially in the 1990s, was taken over by an investment bank in 1998, and sold the treadmill-manufacturing operations in 1999 to trim its debt.

The company then focused on making its cardiac technology compatible with Windows-based computers, and contracted with Stairmaster to continue making treadmills that work in tandem.

The moves enabled Quinton to re-emerge with an initial public offering this spring, and replenish its cash reserves.

The Nautilus Group, a Vancouver, Wash.-company with Nautilus and Bowflex fitness brands, got the Quinton treadmills when it bought Stairmaster for $25 million in a bankruptcy auction in January.

Quinton said it is expecting to become profitable in the fourth quarter of this year. Quinton closed yesterday at $6.54 per share, down 9 cents, and down from its IPO price of $7.

Luke Timmerman: 206-515-5644 or ltimmerman@seattletimes.com.