Wednesday, January 20, 2021

Peloton to pay $ 420 million to acquire fitness equipment maker Precor

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The problem was that Peloton was relatively ill-equipped to handle all this new demand, even after doubling its production capacity and the creation of a new factory in Taiwan. This is where Precor comes in: In addition to operating as a business unit within Peloton, its 625,000 feet of manufacturing space spread between Whitsett, NC, and Woodinville, WA. , will eventually be used to produce new treads and Peloton bikes.

The fact that future Peloton machines will be produced at least in part in the United States should ultimately put an end to the delays which have plagued many recent orders. And beyond that, Precor’s existing relationships with schools, hotels and gym chains could give Peloton a viable path to new facilities once COVID-related restrictions are lifted.

“By combining our talented and committed R&D and supply chain teams with the incredibly knowledgeable Precor team and their decades of experience, we believe we will be able to lead the global connected fitness market in terms of innovation. and scale, ”said William Lynch, President of Peloton.

The company says the first US-made Peloton equipment will roll off the lines “before the end of calendar year 2021,” which should put the combined company in a strong position to grow its business even further. The bigger question is whether people’s passion for Peloton hardware persists after the pandemic and finally wears off – for now, however, the company is determined to go big.

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