Precor is looking to grow, and they may look to acquisitions to do it. Since Amer Group bought the fitness company in 2002 they have been looking for an avenue to expand their offerings into the strength market, but the company has seen slower-than-expected sales.
As reported in SEW 0332, Precors Q2 net sales and operating profits were flat compared to last year, with sales of their flagship elliptical trainer down slightly. The company said that both commercial and consumer markets “appear to be cooling” in North America.
“Amer bought us to grow us We're actively looking for new acquisitions, and our obvious need is strength,” said Precor president Paul Byrne in a published report. Amer will expand Precor into the weight market through either acquisition or through internal expansion. The company has also tossed around the idea of an equipment line at a lower price-point.
Roger Talermo, president and CEO for Amer Group, said the companys first priority is to “build up our product offerings so we will be more complete.”
In related news, Amer will receive $23 million from what the company called an “amicable settlement of a patent litigation case” involving the Life Fitness division of Brunswick Corporation and Precor.
Brunswick will pay the sum in two annual installments in 2003 and 2004 and pay royalties to Precor for all future sales of products covered by the patent. The total sum of the settlement paid by Brunswick was $25 million, with $2 million going to the individual inventor.
