Amer Sports confirmed that it entered into an agreement with Peloton Interactive Inc. for the contemplated sale of Precor, the manufacturer of commercial fitness equipment with a significant U.S. manufacturing presence, in a transaction valued at $420 million.

On December 21, Peloton first announced the sale, but Amer Sports had yet to comment.

Amer Sports said 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 said its 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.”

Amer Sports in early 2019 was acquired by a consortium led by Chinese sportswear giant Anta Sports Products.

The sale of Precor comes as reports arrived last November that Anta Sports was looking for a potential sale of the business for around $500 million. Anta Sports also acquired Salomon, Arc’teryx, Peak Performance, Atomic, Suunto, Louisville Slugger, and Wilson as part of the Amer Sports acquisition.

Photo courtesy Precor