Precor, a wholly-owned subsidiary of Peloton, and Stages Cycling, a manufacturer of commercial indoor cycles, power meters and cycle computers, announced plans to enter into a “strategic global distribution agreement that will expand the availability and reach of Stages Cycling products to new markets and customers.”
Under the terms of the distribution agreement, Precor becomes the worldwide distributor of Stages Cycling’s commercial product lines and will leverage Precor’s sales, service and distribution network in over 100 countries to bring its indoor equipment to commercial clubs, hospitality venues, education institutions, multi-family residential complexes, corporate wellness centers, and country clubs.
Stages Cycling’s products include Stages SC2 and SC3. Stages Studio also provides cloud-based data analysis, group display and motivational indoor cycling experiences.
Dustin Grosz, CEO of Precor, said, “Stages Cycling is a global leader in the cycling industry, with products that are trusted by professional cyclists and indoor cycling studios around the world. We are excited to offer their innovative cycling products to our customers, who are looking for best-in-category equipment backed by the service and support of a partner they trust.”
Jim Liggett, CEO of Stages Cycling, said, “We are thrilled to partner with Precor, a company that shares our passion for innovation, quality and customer service. This agreement will allow us to reach new customers and markets with our products and to provide them with the best possible support and service.”
The agreement terms are expected to go into effect summer 2023.
Peloton acquired Precor for $420 million in April 2021 as it faced challenges keeping up with outsized demand during the earlier stages of the pandemic. On a quarterly earnings call this past February 1, Peloton admitted it had quietly been pursuing a sale of Precor as growth in its business had slowed, but the company planned to keep the business after failing to receive an attractive price.
In mid-February, Peloton appointed Dustin Grosz as Precor’s CEO. He had been the company’s interim CEO, replacing Betsy Webb. Grosz previously was the president and COO of Core Health & Fitness and held leadership roles at Star Trac and StairMaster. Also in mid-February, Frank O’Rourke, formerly at Core Health & Fitness, became SVP of global sales. Grosz reports to Dion Camp Sanders, chief emerging business officer of Peloton.
Photo courtesy Stages Cycling
