NEW YORK (BRAIN) — Peloton has agreed to acquire Precor, one of the largest global commercial fitness equipment providers, in a transaction valued at $420 million.
Precor is currently owned by Amer Sports, the former owner of Mavic and current owner of Enve and other brands including Arc'teryx, Salomon, Wilson and Louisville Slugger.
The purchase should give Peloton a path to accelerate sales to the commercial equipment market including gyms, hotels and apartment and condo developments, while also expanding its domestic manufacturing.
The acquisition would bring Peloton 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.
"Peloton plans to produce connected fitness products in the U.S. before the end of the calendar year 2021," the company said Monday.
"Precor embodies the Peloton mission of putting Members first," said Peloton's president, William Lynch. "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 acquisition also would add a team of nearly 100 research and development employees to Peloton's R&D team.
