Peloton Buys Precor For $420 Million
The interactive fitness company Peloton has reached an agreement to acquire another fitness equipment maker, Precor, for $420 million. The purchase…
The interactive fitness company Peloton has reached an agreement to acquire another fitness equipment maker, Precor, for $420 million. The purchase ties up Precor, a fitness equipment maker that has existed for over 40 years, with Peloton, an interactive fitness company founded only eight years ago but has grown rapidly and generated $1.8 billion in revenue in its most recent fiscal year.
Peloton highlights Precor’s acquisition as one that’ll give it manufacturing capacity in the US as it plans to begin producing its interactive fitness equipment in the US before the end of next year. Precor’s own manufacturing capacity, 625,000-square-feet strong and with in-house tooling and fabrication expertise, will serve as a base for Peloton’s, highlighting the deal as a very strategic one.
Precor is a division of the Chinese-owned Finnish sporting goods company Amer Sports. It’ll now be sold to Peloton, whereas its current President, Rob Barker, will become the General Manager for Peloton Commercial while he simultaneously heads Precor as a division under Peloton.
With Precor, Peloton will notably be getting a team of nearly 100 dedicated research and development employees to add to its own, employees who are crucial to manufacturing and development operations.
The acquisition of Precor is expected to close early next year.
Photo credit: Peloton