Peloton acquires fitness equipment maker Precor for $420 million
In a bid to speed up production and meet its promised delivery windows, Peloton announced today that it plans to acquire the Woodinville, Washington-based exercise equipment manufacturer Precor for $420 million. The deal is expected to close in early 2021.
Founded in 1980, Precor manufactures and supplies fitness machines and cardio equipment. The company manufactures AMTs, bikes, ellipticals, strength lines, and treadmills.
As part of the deal, current Precor President Rob Barker will become CEO of Precor and general manager of Peloton Commercial, reporting to Peloton President William Lynch, the company said.
Peloton will also acquire Precor’s factories in Whitsett, North Carolina, and Woodinville, Washington, which combined have more than 625,000 square feet of manufacturing space. The deal also boosts Peloton’s product development efforts, by adding nearly 100 research-and-development employees to its existing staff.
The deal is expected to close in early 2021. Once it is completed, Precor will operate as a business unit within Peloton, the company said.
“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,” Lynch said in a statement.
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