Peloton will pay $ 420 million to buy fitness equipment manufacturer Precor

The problem was that Peloton was relatively poorly equipped to meet this new demand, even after doubling its production capacity and setting up a new factory in Taiwan. This is where Precor comes in: in addition to operating as a business unit in the Platoon, its 625,000-foot manufacturing space split between Whitsett, North Carolina and Woodinville, Washington will eventually be used to produce new platoons and bicycles.

The fact that future Peloton equipment will be produced at least in part in the United States should ultimately mean the end of delays that have affected many recent orders. And beyond that, Precor’s existing relationships with schools, hotels and gym chains could provide the Platoon with a viable route to new facilities once COVID restrictions are removed.

“By combining our talented and committed research and development teams and supply chain with the incredibly capable Precor team and their decades of experience, we believe we will be able to lead the global fitness market connected both in innovation and scale.” , said Peloton President William Lynch.

The company says that the first Peloton hardware manufactured in the USA will come out of the lines “before the end of the calendar year 2021”, which should put the combined company in a solid position to develop its activity even more. The biggest question is whether people’s passion for Peloton hardware remains complete after the pandemic and finally passes – for now, however, the company is committed to growing.