After flexing its muscles largely inside the home, fitness giant Peloton is looking to grow commercial sales with its purchase of Precor, a hospitality industry fitness provider, CNBC reported.
The $420 million acquisition completed in April empowered a single platform for hospitality industry clients to purchase Peloton's connected fitness equipment and Precor products online. Precor is known for the array of exercise equipment like cycles, ellipticals and treadmills it supplies commercial sites including hotels and health clubs.
"This is really a B2B play for us," Brad Olson, Peloton's chief business officer, told CNBC. "We've been selling Peloton bikes into hotels and resorts for years.....But this is really the culmination and one of the big elements of the deal rationale of why we purchased Precor."
As a bonus, with this merger, Peloton gained capacity to manufacture in the United States as well as access to Precor's wide assortment of commercial and home fitness equipment.
With COVID lockdowns ending and more people back in work, Peloton has seen the need to reach out to corporations to improve its profits. Toward that end, Peloton has launched a corporate wellness program with perks for companies that use its equipment for their office gyms.
The company is also endeavoring to get its cycles into hotel rooms globally, which Olson sees as a "great opportunity" to promote the Peloton product.