Peloton currently owns Precor fitness equipment. The renowned interactive fitness company acquired Precor in 2020, significantly expanding its manufacturing capabilities and market reach within the broader fitness industry.
Peloton finalized the acquisition of Precor for $420 million in December 2020. This strategic move was initially intended to bolster Peloton's production capacity, particularly for its popular exercise bikes and treadmills, at a time of surging demand. By bringing Precor's extensive manufacturing facilities and expertise in-house, Peloton aimed to streamline its supply chain and accelerate product delivery to customers.
| Key Acquisition Details | Information |
|---|---|
| Acquiring Company | Peloton Interactive, Inc. |
| Acquired Company | Precor (a division of Amer Sports prior to acquisition) |
| Acquisition Date | December 2020 (deal announced) |
| Acquisition Cost | $420 million |
| Initial Purpose | To enhance Peloton's production capacity for exercise bikes and treadmills. |
Precor's Evolving Role Under Peloton
While the initial intent behind the acquisition was focused on manufacturing integration for Peloton's core products, the strategy concerning Precor has evolved. Peloton has decided to foster Precor as a distinct, free-standing business. This approach allows Precor to operate with a degree of autonomy, focusing on its traditional strengths in commercial and premium home fitness equipment.
The decision to develop Precor as a separate, strong business unit is a strategic play by Peloton to enhance its attractiveness to a potential buyer in the future. By maintaining Precor as an independent and robust entity, Peloton aims to maximize its value should they decide to divest the brand down the line.
- Strategic Autonomy: Precor operates as a separate business unit, largely maintaining its brand identity and diverse product lines.
- Market Positioning: It continues to serve its established clientele in commercial fitness facilities, hotels, and premium home gyms, distinct from Peloton's direct-to-consumer model.
- Future Value: Positioning Precor as an independent asset makes it potentially more appealing and easier to evaluate for future acquisitions by other entities in the fitness or manufacturing sectors.
This strategic pivot underscores the dynamic nature of corporate acquisitions and how initial goals can shift based on market conditions and business priorities. Precor continues to be a respected name in the fitness equipment market, providing a range of high-quality treadmills, ellipticals, bikes, and strength equipment. For more information on Peloton's operations, you can visit their official website here.
