Peloton simply took a jump that is giant getting its connected bikes and treads outside of the comfortable confines of your house. The fitness player disclosed Monday evening it’ll invest $420 million to purchase fitness that is commercial Precor.
Precor becomes a unit inside of Peloton, utilizing the ongoing company’s president Rob Barker reporting to Peloton president William Lynch. The purchase provides Peloton 625,000 square feet of U.S. manufacturing capacity with in-house fabrication and tooling, product development, and quality assurance abilities in North Carolina and Washington.
That manufacturing capacity is likely to be utilized to make Peloton gear for Precor’s butter and bread customers within the resort, corporate and college campus spaces. Peloton claims it plans to make connected fitness services and products for the marketplace that is commercial the conclusion of season 2021.
“Precor embodies the Peloton mission of putting Members first. Over the last months that are few we’ve gotten to understand the group and saw firsthand just how much they care about their products, customers and, last but most certainly not least, their workers. By combining our talented and R&D that is committed supply chain groups using the incredibly capable Precor group and their years of experience, we believe I will be in a position to lead the worldwide connected fitness market in both innovation and scale,” Lynch stated in a statement.
This Nov. 19, 2019, picture shows the logo design on a Peloton bike in bay area. (AP Photo/Jeff Chiu) This Nov. 19, 2019, picture shows the logo for a Peloton in the San Francisco bay area. (AP Photo/Jeff Chiu). Peloton is demonstrating to be creative within the utilization of its cash pile. Rather than overpay for a piece that is brand new of equipment, the company has spent much more strategic areas to boost its own brand.
Almost 8 weeks after going public in 2019, Peloton acquired one of its bicycle manufacturers Tonic Fitness tech in Taiwan. The purchase — which cost $47.4 million — helped Peloton better control its flow of items to promote. That will show critical as Peloton moves to grow its product line as it has been doing recently using the introduction of a revamped bike and a cheaper treadmill machine. It marked the ongoing company’s second acquisition. Peloton simply took a jump that is giant getting its connected products in line.