Peloton to acquire fitness equipment provider Precor for $420m
Peloton, a US-based exercise equipment and media company, has agreed to acquire Precor, a commercial fitness equipment provider, for $420 million.
The acquisition will help Peloton in setting up its US manufacturing capacity, increase its research and development capabilities with Precor’s team, and also speed up its penetration of the commercial market.
Peloton is aiming to produce connected fitness products in the US by the end of 2021.
The acquisition gives 625,000 square feet of manufacturing capacity to Peloton in the US with in-house tooling and fabrication, product development, and quality assurance capabilities located across North Carolina and Washington states.
Peloton said that by making fitness equipment closer to US consumers, it will be able to provide connected fitness products to its members sooner.
Precor’s US facilities will join the existing manufacturing network of Peloton with its third party manufacturers and the Tonic facilities located in Taiwan.
Rob Barker – Precor President said: “Precor is driven to create personalized health and fitness experiences that help people live the lives they desire. That passion has led us to create highly customizable solutions running on the fitness industry’s largest commercial network.
“The Precor team is excited to combine our manufacturing expertise and more than 40 years of equipment innovations with Peloton’s award winning workout experiences to help commercial customers succeed and keep exercisers moving.”
Subject to the closing of the deal, Precor will operate as a business division within Peloton.
Precor is a unit of Amer Sports, a Finnish sporting goods company, which is owned by an investor consortium that includes ANTA Sports, FountainVest Partners, Anamered Investments, and Tencent Holdings.
William Lynch – Peloton President said: “Precor embodies the Peloton mission of putting Members first. Over the last few months, we’ve gotten to know the team and saw firsthand how much they care about their products, customers and, last but not least, their employees.
“By combining our talented and committed R&D and Supply Chain teams with the incredibly capable Precor team and their decades of experience, we believe we will be able to lead the global connected fitness market in both innovation and scale.
“We’re looking forward to integrating the Precor team into Peloton and excited about what this means for the future of our brand and our ability to continue delivering world-class Member experiences.”
The deal is likely to be wrapped up in early 2021.