Yesterday, Peloton acquired fellow fitness equipment maker Precor for $420 million, the company’s largest purchase to date.
The company’s COVID-19 pandemic boom has almost been too good for business, straining it’s supply chain and causing significant shipping delays. Precor has 625,000 square feet of prime manufacturing space in the United States, which should help Peloton speed up delivery of it’s bikes.
Precor could also be Peloton’s ticket into the commercial side of fitness. While Peloton has been focused on it’s at-home business, Precor has strong relationships with commercial spaces like gyms, hotels and corporate offices. That could be a significant growth opportunity for Peloton when, and if those spaces fill up again after the pandemic subsides.
Get instructions on how to enable our Flash News Briefing skill to your Amazon devices: