PELOTON SIGNS AGREEMENT TO ACQUIRE PRECOR
Acquisition expected to establish Peloton’s U.S. manufacturing footprint, enhance R&D capabilities, and accelerate growth of commercial verticals
It’s been a busy year for Peloton, the popular stationary bike and fitness company. From releasing its new Bike+ in September (while dropping the price on its original Bike), to partnering with Beyoncé in November, and settling yet another lawsuit against a competitor (this time Flywheel) in February, the company continues to gain momentum heading into the winter season as it grows its presence in the U.S. fitness market.
This time, the latest development involves a major acquisition—$420 million and all—of the global fitness equipment manufacturing giant, Precor, to be finalized in early 2021. Peloton announced the news on December 21 in a press release.
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Since the start of the pandemic, Peloton’s membership and home bike sales have surged as Americans look for ways to stay fit at home. In its latest fiscal report, Peloton reported a year-over-year increase in connected fitness subscriptions by 137 percent (to 77.8 million) and a 232-percent year-over-year increase in total revenue (to $757.9 million).
The acquisition adds 625,000 square feet of U.S. manufacturing capacity with in-house tooling and fabrication, product development, and quality assurance capabilities in Whitsett, North Carolina and Woodinville, Washington. Peloton will be able to control the entire production process, from design to ship, and increase total production scale, while maintaining a high level of product quality. By making fitness equipment closer to U.S. consumers, Peloton will be able to deliver connected fitness products to Members sooner.
The Precor U.S. facilities will join Peloton’s existing manufacturing network with its third party manufacturers and the Tonic facilities based in Taiwan. Once the transaction closes, the Precor U.S. facilities will provide Peloton with incremental operational scale and flexibility to support the growth of its connected fitness product line.
The Precor acquisition will expand Peloton’s equipment production stateside, with one goal being to speed up the delayed delivery times of its home bikes because of current high demand. Precor has two U.S. facilities—in Whitsett, North Carolina, and Woodinville, Washington—totaling “625,000 square feet of U.S. manufacturing capacity with in-house tooling and fabrication, product development, and quality assurance capabilities.”
Along with expanding production of its current line of products, Peloton will also make use of Precor’s research and development team, which boasts close to 100 employees.
Precor has produced commercial fitness products for over 40 years, including stationary bikes, treadmills, and strength training equipment. Notably, the company has offered a variety of licensed Spin bikes.
Peloton has also expanded the free trial period for its digital membership to two months, until January 31, just in time for the New Year.
Peloton is the leading interactive fitness platform, with a loyal community of more than 3.6 million Members. The company pioneered connected, technology-enabled fitness, and the streaming of immersive, instructor-led boutique classes for its Members anytime, anywhere. Peloton makes fitness entertaining, approachable, effective, and convenient, while fostering social connections that encourage its Members to be the best versions of themselves. An innovator at the nexus of fitness, technology, and media, Peloton has reinvented the fitness industry by developing a first-of-its-kind subscription platform that seamlessly combines the best equipment, proprietary networked software, and world-class streaming digital fitness and wellness content, creating a product that its Members love. The brand’s immersive content is accessible through the Peloton Bike, Bike+, Tread, Tread+ and Peloton App, which allows access to a full slate of fitness classes across disciplines, on any iOS or Android device, Apple TV, Fire TV, Roku TVs, and Chromecast and Android TV. Founded in 2012 and headquartered in New York City, Peloton has a growing number of retail showrooms across the U.S., UK, Canada and Germany. For more information, visit www.onepeloton.com.
Precor, headquartered in Greater Seattle, WA, has been a pioneer in delivering fitness experiences for commercial customers and exercisers for more than 40 years. Precor serves more than 100 countries worldwide with offices in the Americas, EMEA, and APAC and operates two U.S.-based manufacturing locations. Precor products and services span across all major categories, including cardio, strength, functional fitness, group training, and connected solutions. In 2020, Precor reached the milestone of recording one billion workouts in its Preva® fitness cloud. That number represents more than 140,000 connected units in over 13,000 facilities. On average, Precor exercisers record more than 20 million minutes of workouts each day as recorded by the Precor digital platform Preva®. Precor segments include commercial clubs/facilities and the verticals of Hospitality, Multi-family Housing, Corporate, and Education. For more information, visit www.Precor.com
Christopher ‘Skip’ Wilson
Precor Global Communications
Peloton Corporate Communications