Peloton to acquire fitness equipment maker Precor for $420 million
Problem was, Peloton was relatively ill-equipped to manage all that brand-new demand, even after doubling its production capability and spinning up a brand-new factory in Taiwan. That’s where Precor comes in: In addition to running as a company unit inside Peloton, its 625,000 feet of producing space split in between Whitsett, North Carolina, and Woodinville, Washington will ultimately be used to produce new Peloton Treads and Bikes.
The reality that future Peloton gear will be produced a minimum of in part in the United States need to ultimately imply an end to the hold-ups that have plagued lots of recent orders. And beyond that, Precor’s existing relationships with schools, hotels and health club chains could offer Peloton a feasible route into new centers when COVID-related restrictions are raised.
“By integrating our dedicated and skilled R&D and Supply Chain groups with the extremely capable Precor group and their decades of experience, our company believe we will have the ability to lead the global linked physical fitness market in both innovation and scale,” stated Peloton president William Lynch.
The company states the very first US-made Peloton hardware will roll off the lines “before the end of fiscal year 2021,” which need to put the combined company in a solid position to increase its company even further. The larger question is whether people’s passion for Peloton hardware sticks after the pandemic completely and lastly passes– for now, though, the company is dedicated to going big.