Peloton to pay $ 420 million for fitness equipment manufacturer Precor

Connected sport is more relevant than ever. There are already many players on the market and the arrival of Apple with Fitness + makes things even faster.

Sports at home was one of the major trends of 2020, mainly because of the containment measures, and one of the biggest players in this market has decided to strengthen itself further to make the most of this change usually from the general public. In a press release, Peloton today confirms its intention to acquire Precor , manufacturer of sports equipment for the home, for individuals and professionals, for the sum of 420 million of dollars. The deal is expected to be finalized by the end of 2021.

Peloton will offer itself the equipment manufacturer Precor

Like a number of other companies specializing in connected fitness, Peloton has seen its activities explode this year following various measures taken by governments, resulting in confinement but also closure of gyms. And to complicate matters even further, the early days of the pandemic were accompanied by shortages of some commodities like weights, floor mats and other equipment. Individuals wishing to play sports at home have therefore sought alternatives. It didn’t take long for Peloton, which normally specializes in cycling, to open up its activity to guided physical exercises in general. So much so that the number of full company subscriptions has more than doubled in just one year.

The problem was, Peloton was not really able to meet this huge demand, even after doubling its production capacity and getting a new factory in Taiwan. This is where Precor comes in. In addition to operating as an operational unit within Peloton, its 5.81 hectares of production area in Whitsett, North Carolina, and Woodinville , Washington, will significantly increase production volumes for new Peloton equipment.

to further accelerate its activities and production volumes

The fact that future Peloton aircraft will be produced in the United States, at least in part, should help shorten the lead times that many customers currently complain about. And beyond that, Precor’s existing relationships with schools, hotels and gym chains could give Peloton access to new centers once the Covid-19 restrictions are finally lifted.

“By combining our talented and dedicated R&D and sourcing teams with the incredible Precor team and their decades of experience, we are confident that we can lead the global connected fitness market both in terms of innovation. than in volume ”, declared William Lynch, President of Peloton.

The company says the first US-made Peloton aircraft will be released “before the end of calendar year 2021,” which should put the company in a good position to further accelerate its business. The big question will ultimately be whether the enthusiasm for Peloton devices will remain intact once the pandemic is behind us … To be continued!

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