Peloton, an organization, dealing with at-home fitness equipment, landed its biggest deal with the best bargain yet. Anto Sports, president of Precor, was potentially hoping for $500M for his company but ended up selling it $80M shy of his target. It seems like Precor had it rough for the past months, given the pandemic, which has left gym chains and hoteliers useless, giving more advantage to at-home fitness equipment. While looking to expand their commercial business and increase manufacturing capability, Peloton decided to retain Precor president Rob Barker, the General Manager of Peloton Commercial. Hopefully, with someone like him on board, infiltration of equipment into the market would be easier.
While the near-term use of the acquisition, which is set to close in 2021 if it meets all approvals, is to speed up delivery times for customers of existing equipment, long-term this deal sets Peloton up nicely for greater commercial market expansion — once the commercial market returns to growth. While the pandemic has been a clear boon for Peloton’s at-home equipment and fitness subscription service, it’s also been devastating for gym chains and hoteliers, meaning that it’s likely Precor’s primary business was taking a considerable hit over the past few months.From Tech Crunch