Peloton Shares Soar After Announcing Plans to Acquire Precor for $420M
Peloton shares soared Monday after the company announced it plans to acquire the exercise equipment manufacturer Precor for $420 million, in a bid to speed up the production of its cycles and treadmills and meet its promised delivery windows.
Its stock jumped more than 8% in after-hours trading.
Demand for Peloton’s exercise equipment has surged during the coronavirus pandemic, straining its supply chain, as consumers look to work out at home during the pandemic.
As part of the deal, Peloton will acquire Precor’s factories in Whitsett, North Carolina, and Woodinville, Washington, which combined have more than 625,000 square feet of manufacturing space. The deal also boosts Peloton’s product development efforts, by adding nearly 100 research-and-development employees to its existing staff.
