Amer Sports has entered into an agreement with Peloton Interactive Inc. − a NASDAQ-listed, leading interactive fitness platform – for the contemplated sale of Precor, one of the largest global commercial fitness equipment providers with a significant U.S. manufacturing presence, in a transaction valued at $420 million. The agreement between Amer Sports and Peloton is subject to customary notifications and approvals. The terms and conditions for the contemplated sale will be presented to the relevant employee representative bodies. The transaction is expected to close – and the transfer of ownership is expected to occur − in early 2021.
As announced earlier, Amer Sports’ Fitness segment has been under strategic review to evaluate how to best develop the segment further. After careful consideration, the company made the decision to consider the divestment process of Precor to enable the brand to reach its full potential with a new owner.
“As we continue to focus the Amer Sports Group portfolio and further enhance capabilities to drive the company into a new phase of growth, we are pleased to announce the deal with Peloton. We believe that the two brand companies would truly complement each other, and we would be interested to follow the further development of the Precor brand under its new ownership,” says James Zheng, Board Executive Director. “Amer Sports continues to capitalize on its strategic priorities, especially within Softgoods, Direct to Consumer, and building a significantly enhanced presence in China.”
After the completion of the transition of ownership, Precor would operate as a business unit within Peloton lead by current Precor Brand President Rob Barker. With the acquisition, Peloton would establish U.S. manufacturing capacity, boost research and development capabilities with Precor’s highly-skilled team, and accelerate its penetration of the commercial market.
After the closing of the deal in early 2021, there would be transition period during which Amer Sports would continue to support Precor employees through various transitional services aimed to secure business continuity.