Peloton to acquire Precor in a transaction valued at $420 million.
Peloton has entered into an agreement to acquire Precor in a transaction valued at $420 million. The deal is expected to close in Q1 of 2021.
According to Peloton, the move will enable the brand to establish U.S. manufacturing capacity, boost research and development capabilities, and accelerate penetration of the commercial market. Precor will operate as a business unit within Peloton.
As part of the transaction, Peloton is gaining:
- 625,000 square feet of U.S. manufacturing capacity with in-house tooling and fabrication, product development, and quality assurance capabilities in Whitsett, North Carolina and Woodinville, Washington.
- A team of nearly 100 dedicated research and development employees to Peloton’s accomplished R&D team.
- One of the largest commercial fitness equipment providers in the world, with 40 years of experience and expertise building a customer-focused business at scale.
Peloton plans to produce connected fitness products by the end of 2021 within the U.S. According to Peloton, the Precor U.S. facilities will provide the company with incremental operational scale and flexibility to support the growth of its connected fitness product line.
Precor’s president, Rob Barker, will become CEO of Precor and general manager of Peloton Commercial, and will report to William Lynch, the president of Precor.
“Precor embodies the Peloton mission of putting members first,” said Lynch, in a statement. “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.”
Precor is a division of Amer Sports, a Finnish sporting goods company. It is currently owned by an investor consortium including ANTA Sports, FountainVest Partners, Anamered Investments Inc. and Tencent Holdings Limited.