Peloton to buy Precor in company's largest over acquisition

Peloton to buy Precor in company's largest over acquisition


Peloton makes biggest purchase with US$420M Precor deal
Mark Gurman and Jason Kelly, Bloomberg News
Christine Poole discusses Peloton
Peloton Interactive Inc. agreed to buy fitness-equipment company Precor for US$420 million to gain U.S. manufacturing capabilities and new expansion opportunities.
The deal is expected to close early next year and is the largest to date for the New York-based maker of pricey bikes and treadmills. Shares of the company jumped eight per cent in extended trading.
Peloton sales have soared this year as the pandemic shut gyms and forced people to work out from home. However, the company struggled to keep up with demand. That led to long wait times and frustrated customers. By making fitness equipment closer to U.S. consumers, Peloton will be able to deliver products sooner. Existing manufacturing facilities overseas will continue operating, according to the company.

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