Peloton, New York, officially closed the $420 million cash acquisition of Precor, Woodinville, Washington, on April 1, the company announced.
With the acquisition, which was first announced on Dec. 21, 2020, Peloton will have the ability to manufacture its products within the United States rather than relying on its manufacturing facilities overseas. Before the end of 2021, the company will begin producing its first connected fitness products within the United States. Precor has two U.S. manufacturing facilities—one in Woodinville, Washington, and the other in Whitsett, North Carolina.
Peloton plans to boost research and development capabilities with Precor's team and accelerate Peloton's penetration of the commercial market.
"This is a major milestone for Peloton and our global community," said William Lynch, Peloton's president. "We've spent the last few months learning more about Precor's relentless focus on the customer experience, and we're now even more enthusiastic about welcoming this talented team to Peloton. Now with Peloton and Precor, we believe we're even better positioned to achieve our goal of bringing the best experience in connected health and fitness to more people around the world."
Precor President Rob Barker will continue to lead Precor and become CEO, Precor and general manager, Peloton Commercial, reporting to Lynch.
"The next few months are going to be some of the most exciting as Precor and Peloton work together to build for the future and empower more people to live the lives they desire," Barker said. "With Peloton Commercial, we expect we'll be able to not only continue our relationship with our current customers but scale the Peloton experience that millions of people have at home to even more hotels, campuses and multifamily residences."
Peloton has a community of more than 4.4 million members for its interactive fitness platform using its Peloton Bike, Bike+, Tread, Tread+ and Peloton App, which allows access to a full slate of fitness classes across disciplines.
Peloton is a publicly traded company on Nasdaq. Its second quarter 2021 revenue (three-month period ended Dec. 31, 2020) was $1.06 billion, which is a 128 percent increase from the same period in 2020.