At-home fitness giant Peloton has officially completed the acquisition of equipment provider Precor, in a deal worth US$420m.
Precor will now become a division of Peloton, with current Precor president, Rob Barker, becoming CEO of Precor and general manager of Peloton Commercial. He will report directly to William Lynch, president of Peloton.
The deal, first revealed in December 2020, will result in Peloton establishing a US-based manufacturing operation, helping it to meet the increased demand for its products created by the pandemic.
Peloton achieved record sales during 2020, but disruptions in the supply chain – caused by the coronavirus outbreak – led to a bottleneck leading to a "backlog of deliveries in all geographies".
Peloton will gain 625,000sq ft of factory space in North Carolina and Washington State, US, along with a 100-strong R&D team, in-house tooling and fabrication and a quality assurance set-up, enabling it to shorten time to market for its products, as its existing manufacturing capacity is mainly in Asia.
Utilising its newly-acquired manufacturing capacity, Peloton plans to produce connected fitness products in the United States before the end of the calendar year 2021. Peloton also plans to accelerate its penetration of the commercial market.
William Lynch, Peloton’s President, said: "This is a major milestone for Peloton and our global community.
“We’ve spent the last few months learning more about Precor’s relentless focus on the customer experience and we’re now even more enthusiastic about welcoming this talented team to Peloton.
"Now with Peloton and Precor, we believe we’re even better positioned to achieve our goal of bringing the best experience in connected health and fitness to more people around the world.”
Precor President Rob Barker added: "The next few months are going to be some of the most exciting as Precor and Peloton work together to build for the future and empower more people to live the lives they desire.
“With Peloton Commercial, we expect we’ll be able to not only continue our relationship with our current customers, but scale the Peloton experience that millions of people have at home to even more hotels, campuses, and multifamily residences."
