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7 fitness industry M&A deals experts say to watch out for in 2021


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The fitness industry is rapidly evolving as more Americans workout from home than ever before thanks to the pandemic.
Experts say these shifts will be lasting, and will catalyze a period of consolidation within the fitness industry. 
We spoke with several industry insiders who shared their predictions for possible fitness industry mergers and acquisitions.
The year 2021 is already shaping up to be a pivotal one for the rapidly evolving fitness industry.  ....

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Agency holding groups could be the next arbitrage target for PE investors


Specifically, the agency holding groups. 
Publicis may have denied a report from Campaign that it has held talks with a private equity investor about a possible deal but conversations like this are par for the course right now. 
“These conversations are an ordinary course of business for big companies that find themselves in the positions the holding groups do now,” said Jim Houghton, partner at M&A advisors Waypoint.
They may be hulking, legacy businesses, but the agency holding groups represent something that’s like catnip to private equity investors an arbitrage opportunity. 
Whether its Publicis or IPG, these are businesses private equity investors can buy relatively cheaply and then, after steering them through a transition of intense cash flow and margin improvement, sell up. It’s the classic private equity move to juice profits on undervalued assets. ....

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Experts weigh in on impact of Peloton's $420 million Precor acquisition


Precor
Peloton announced Monday that it was buying the fitness-equipment provider Precor for $420 million. 
Analysts said the deal would play a significant role in both short- and long-term growth for Peloton, including increasing production capabilities through Precor s 625,000 square feet of manufacturing space, while also helping the luxury-fitness company push into more commercial venues like hotels and gyms. 
The deal helps Peloton add a large footprint to be able to serve consumers who will still continue to exercise from home as the restrictions and stay-at-home orders continue,
Andre Artacho, the
managing director of the growth consultancy Two Nil, told Business Insider. ....

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