With no sign that home workouts will fade out any time soon, Peloton cranked up its manufacturing capacity in a big way this week and it picked up a bunch of new fans on Wall Street.
The maker of high-end stationary bikes and accompanying monthly subscriptions said late Monday that it will spend $420 million to acquire Precor, a company whose fitness machines populate hundreds of commercial and hotel gyms.
The acquisition, Peloton’s biggest to date, gives the company its first manufacturing capacity in the U.S., its biggest market, during a global pandemic that has people cancelling gym memberships and seeking ways to stay fit in the safety of their own homes.
At the opening bell Tuesday, shares of Peloton Interactive Inc. spiked 12% to an all-time high.
The ability to churn out its bikes as demand exploded this year has been a challenge for the New York City company. The phrase “manufacturing capacity” came up no less that eight times during its earnings conference call last month.