Piloton to acquire Fellness devices maker Priker for 20 420 million

Peloton said Monday it plans to acquire exercise device manufacturer Pricer for 420 million to speed up production of its wheels and treadmills and meet its promised distribution window.

Demand for Piloton’s exercise equipment has increased during the coronavirus epidemic, pulling its supply chain, as consumers look to work at home during the epidemic.

As part of the deal, Piloton will acquire Whiteset, a North Carolina and natural plant in Wuxinville, Washington, with a combined production space of more than 625,000 square feet. The deal also accelerates Piloton’s product development efforts by adding about 100 R&D staff to existing staff.

Shares of Peloton jumped more than 5% in after-hours trading.

The deal is expected to close in early 2021. Once completed, Pracor will operate as a business unit within Peloton, the company said.

Incumbent Pricor President Rob Barker will become Pricor’s CEO and general manager of Piloton Commercial, and will report to Piloton President William Lynch, the company said.

“By combining our talented and committed R&D and supply chain teams with a highly competent practitioner team and their decades of experience, we believe we can advance the global connected fitness market in both innovation and scale,” Lynch said in a statement.

When Pelot reported quarterly earnings in November, it warned that it would operate under a supply constraint “for the near future” due to increased demand for its products. As sales have increased, Peloton customers have reported delayed shipments and poor service.

Peloton expects Pressure to help the joint venture in new markets thanks to existing relationships globally with U.S. hotel chains, multifamily residences and college leagues and corporate corporate campuses.

With the market close on Monday, Peloton’s stock has risen more than 403% this year, bringing its market cap to .2 42.2 billion.

Read the full release announcing the deal here.