The transaction is anticipated to be completed by the end of 2021
American exercise equipment & media company, Peloton has reportedly announced its acquisition of home and commercial-grade fitness equipment maker, Precor for a sum of $420 million. According to reports, the acquisition will enable Peloton to utilize Precor’s 625,000 feet manufacturing space, split between Woodinville, Washington, and Whitsett, North Carolina, for producing new Peloton Bikes and Treads.
For that record, Peloton was comparatively ill-equipped for handling the new pandemic-driven demand, even after setting up a new factory in Taiwan and doubling its production capacity. Alike several other connected fitness firms, Peloton has witnessed its business hike this year owing to an upsurge in the stay-at-home orders as exercise connoisseurs started working out at home.
Early days of the pandemic were marked by remarkable shortages of yoga blocks, free weights, and other types of workout equipment, indicating that people were on the lookout for meaningful alternatives.
However, it did not take much time for Peloton to rise in popularity for its specialized treadmills and spin bikes that tie into streaming workouts. This surge in demand extended to a point where the company’s global membership base escalated to more than twice in a year.
Sources claim that the acquisition would facilitate the production of the future Peloton gear in the U.S., gradually putting an end to the delays that have afflicted many recent orders. Further, Precor’s existing relationships with gym chains, schools, and hotels could provide Peloton with new opportunities once the restrictions related to COVID-19 are lifted.
Commenting on the move, William Lynch, President of Peloton, said that the integration of Peloton’s committed and talented supply chain and R&D teams with the incredibly capable team at Precor and its decades of experience will allow their firm to lead the worldwide fitness market in both scale and innovation.