Peloton to pay $420M for Precor, longtime Seattle-area maker of economic health gear

(Peloton Picture)

Peloton introduced Monday that it’s buying Precor, the longtime Woodinville, Wash,-based makers of economic health gear, in a deal valued at $420 million.

Peloton has been driving a wave of recognition with its tech-fueled at-home interactive health program, and with the acquisition the 8-year-old firm plans to determine U.S. manufacturing capability, increase analysis and improvement capabilities, and speed up Peloton’s penetration of the business market, according to a news release. Peloton has struggled to maintain up with demand amid the pandemic and cited provide constraints in its November earnings name.

The deal can be Peloton’s largest so far. Shares of Peloton have been up greater than 8% in after-hours buying and selling Monday.

Based in 1980, Precor has many years of expertise supplying health gear to golf equipment, motels, health facilities and residential exercisers. The corporate is a unit of Finnish sports activities gear maker Amer Sports activities, which is owned by an investor consortium that features Anta Sports activities and Tencent.

Precor operates 625,000 sq. ft of producing services in Whitsett, N.C., and Woodinville.

“Precor embodies the Peloton mission of putting members first,” mentioned Peloton President William Lynch in an announcement. The deal, which might shut in 2021, would add almost 100 Precor analysis and improvement workers to Peloton’s staff.

“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 mentioned.

Precor President Rob Barker will turn out to be CEO of Precor and normal supervisor of Peloton Business, reporting to Lynch.

On its web site, Precor says it launched the primary ergonomically sound rowing machine in 1980, and has been “supporting the natural movement of the human body ever since.” In 1990, it created the primary cushioned treadmill; the Elliptical Health Crosstrainer in 1995; and the Adaptive Movement Coach in 2007.

The coronavirus pandemic has accelerated demand for Peloton gear akin to bikes and treadmills as extra individuals look to keep away from gyms and train from house. The corporate’s inventory value is up greater than 400% this 12 months and its market capitalization is north of $40 billion.

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