Consolidation in view in individual sports practice. Peloton announced on December 21 that it had reached an agreement to acquire fitness equipment supplier Precor in a transaction valued at $ 420 million. An operation which should allow the company to become “world leader in connected fitness, both in terms of innovation and volume“.
Established in the 1980s, Precor is a division of the Finnish sports goods company Amer Sports (Wilson…), which itself belongs to a consortium of investors including ANTA Sports. Precor is today one of the world’s leading suppliers of fitness equipment, and a specialist in the manufacture of elliptical trainers.
The “Netflix of the bike”
For its part, Peloton is an interactive platform that offers connected fitness classes based on new technologies. Founded in 2012 and based in New York City, it delivers immersive online courses taught by professionals and aims to foster social connections. The platform, nicknamed the “Cycling Netflix”, is at the crossroads of fitness, technology and media.
It works by subscription and combines equipment, network asset management software and streaming digital fitness and wellness content. Peloton boasts over 3.6 million members and its apps (Peloton Bike, Bike +, Tread, Tread + and Peloton App) are available on iOS or Android, Apple TV, Fire TV, Roku TV, and Chromecast and Android TV. It has offices and showrooms in the United States, United Kingdom, Canada and Germany.
New production plant of 60,000 m²
This operation aims to establish Peloton’s presence on the American market – Precor having a significant industrial presence in the United States via a 60,000 m² production plant -, to strengthen its R&D capacities and to accelerate growth. vertical business activities. Precor is indeed well established in the tourism sector (hotels, residences) as well as in the academic and professional spheres.
The sites in Whitsett, North Carolina, and Woodinville, Washington, will enable the New York platform to “control the entire production process, from design to shipment, and increase the total production scale, while maintaining a high level of product quality. By bringing fitness equipment closer to U.S. consumers, Peloton will be able to deliver connected fitness products to members faster.“, explain the partners.
Peloton says it hopes to produce the first connected fitness products in the United States before the end of 2021. Precor will operate as a business unit within Peloton. Precor President Rob Barker keeps the reins of his company while becoming CEO of Peloton Commercial, reporting to William Lynch, President of Peloton. The transaction is due to be finalized at the beginning of 2021.