Peloton has been riding a wave of popularity with its home-based interactive fitness program, and with the acquisition it plans to establish US manufacturing capacity, boost research and development capabilities, and accelerate Peloton’s penetration of the commercial market, according to a news release.
Founded in 1980, Precor has decades of experience supplying fitness equipment to clubs, hotels, fitness centers and home exercisers. The company is a unit of Finnish sports equipment maker Amer Sports, which is owned by an investor consortium that includes Anta Sports and Tencent Holdings Ltd.
Precor operates 625,000 square feet of manufacturing facilities in Whitsett, NC, and Woodinville.
“Precor embodies the Peloton mission of putting members first,” said Peloton President William Lynch in a statement. The deal, which would close in 2021, would add a team of nearly 100 dedicated research and development Precor employees to Peloton’s team, which Lynch said would “lead the global connected fitness market in both innovation and scale.”
Precor President Rob barker will become CEO of Precor and general manager of Peloton Commercial, reporting to Lynch.
On its website, Precor says it launched the first ergonomically sound rowing machine in 1980, and has been “supporting the natural movement of the human body ever since.” In 1990, it created the first cushioned treadmill and then the Elliptical Fitness Crosstrainer in 1995. In 2007 came the Adaptive Motion Trainer.
The coronavirus pandemic has accelerated demand for Peloton equipment such as bikes and treadmills as more people look to avoid gyms and work out from home. The company’s stock price is up more than 400% this year and its market cap is $ 42.2 billion, according to CNBC.
Founded in 2012, the deal is the largest ever for Peloton, TechCrunch reported.