PTON Stock: 15 Things for Peloton Investors to Know About the Precor Deal

Peloton (NASDAQ:PTON) is seeing a major spike in PTON stock after announcing a deal to acquire fitness equipment company Precor.

Peloton (PTON) sign on city storefront

Source: JHVEPhoto / Shutterstock.com

Here’s what PTON stock investors need to know about the acquisition plan.

  • Peloton is planning to pay a total of $420 million to bring Precor under its control.
  • This will have it operating as a business unit within the company.
  • When the transaction closes, Precor President Rob Barker betake on new roles at Peloton.
  • That includes serving as the CEO of Precor, and the general manager of Peloton Commerical.
  • This will have him reporting directly to Peloton president William Lynch.
  • PTON is expecting its acquisition of Precor to close in early 2021.
  • The company also notes that it plans to speed up its push into the commercial market with this acquisition.
  • That includes producing connected fitness products in the U.S. by the end of next year.
  • This will be possible with the help of the Precor team.
  • Peloton’s acquisition of Precor adds 625,000 square feet of manufacturing in the U.S.
  • Among this is equipment for in-house tooling, development, and production.
  • That includes factories in Whitsett, N.C. and Woodinville, Wash.
  • The Precor manufacturing network will work alongside Peloton’s current third-party network, which is based out of Taiwan.
  • Peloton says that this should allow the company to get products out to customers faster.
  • It will also result in a boost to its research and development with the company gaining almost 100 researchers.

PTON stock was up 13.2% as of Tuesday morning.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.


Article printed from InvestorPlace Media, https://investorplace.com/2020/12/pton-stock-15-things-for-peloton-investors-to-know-about-the-precor-deal/.

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