Precor

History

2020: Peloton purchased Precor for $420 million

At the end of December, 2020 the producer of Peloton fitness exercise machines announced acquisition of the competitor - Precor company. Purchase will be performed within the transaction for the total amount of $420 million which, as reported in the press release, will allow Peloton to increase considerably production capacities and to derive benefit of integration with the products Precor.

It is said in the statement of Peloton that the company will continue production of products for fitness from a Connected Fitness segment until the end of calendar 2021. Peloton is going to increase production capacities and together with the Precor command to activate research and development.

Peloton purchased Precor for $420 million

Precor which was earlier a part of the Finnish company on production of sports goods Amer Sports will become business division in Peloton with the president of Precor Rob Barker as the CEO. Barker will submit to William Lynch, the president of Peloton. Precor is most known for the line of elliptic exercise machines, but models under own brand and also Icarian enter its power equipment. Precor also offers a set of products for fitness from category Connected Fitness.

Precor already maintains considerable productive activity in the USA and also the company has special groups and the enterprises for research and development. Uiyalyam Lynch noted that Precor will help Peloton to expand a supply chain. Precor will also provide Peloton of 625 thousand square feet of production areas with tools in Whitsett (State of North Carolina), and Vudinville (State of Washington).

Against the background of the crisis caused by a pandemic of a coronavirus of COVID-19, Peloton fights against an imbalance of supply and demand. The company noted: 'In spite of the fact that we considerably expanded our production capabilities and we expect continuation of progress in the coming months with opening of our new plant, in the near future we will work in the conditions of restrictions of deliveries.'^[1]

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