Amer Group Plcs Fitness Equipment business, Precor Inc., has acquired ClubCom, a provider of private television networks to clubs and fitness facilities. In addition, Precor is also acquiring ClubComs video hardware and system division Cardio Theater. The total consideration for the acquisition is USD 22 million.
ClubComs offering includes audio/video entertainment and network systems, with technology enabling clubs to customize programming. Cardio Theater is the US market leader in video hardware and systems in clubs and fitness facilities. The acquisition excludes ClubComs advertising sales division.
ClubComs technology platform is expected to enhance Precors growth potential as a result of its full-line product offering and value-added services. The annual sales of the acquired businesses of ClubCom and Cardio Theater are approximately USD 15 million, of which the majority relates to Cardio Theater. Cardio Theaters operations are profitable, whereas ClubCom is a developing technology requiring investment. ClubCom is based in Pittsburgh, PA, USA and employs 67 staff.
The ClubCom acquisition closely follows the purchase of Fitness Products International on 13 January 2004, best known for its Icarian strength equipment brand. These acqusitions have enabled Precor to improve its product offering at a time when the fitness market is both consolidating and focusing on developing stronger relationships with suppliers who can offer a complete range of products. Precor also expanded its service offering recently by introducing a new financing program for commercial customers.
Precor manufactures technically advanced premium-quality fitness equipment for the commercial and home markets, featuring aerobic exercise equipment, and stretching and strength-training systems. Precor is the worlds leading manufacturer of elliptical cross-trainers.
