Amer Group Plc announces that it is expanding its operations by acquiring Precor Inc, an US based supplier of fitness equipment, for a total consideration of approximately EUR 180 million. Precor offers premium fitness equipment for both the home and commercial fitness markets. Precor's annual sales in 2002 are estimated to be approximately EUR 195 million and its operating profit EUR 24 million. Approximately 20% of Precor's net sales come from markets outside North America.
Precor is one of the best-known fitness equipment brands in the USA and is the market leader in elliptical fitness equipment. Its product portfolio includes cross trainers, treadmills and cycles, amongst others. Precor invests heavily in R & D and currently holds more than 170 patents.
"Precor is a well-known, respected company and an established brand and its products utilise the most advanced technology in their field - as do our other brands, Wilson, Atomic and Suunto", commented Roger Talermo, president and CEO of Amer Group. "This acquisition complements our existing product portfolio and brings us one step closer to our target of becoming the number one sports equipment company in the world."
The agreement with Precor's parent company, Illinois Tool Works Inc, is expected to be completed in November 2002. The transaction requires approval from the relevant competition authorities.
Precor is headquartered in Seattle, USA. The company employs nearly 500 people. The president of Precor, Paul Byrne, will continue in his current position.
Fitness is the largest sporting goods equipment segment in the USA (2001: $3.6 billion, wholesale sales). Since 1990, its annual growth rate has been approximately 7%. There are 34 million health club members in the USA. Growth of the industry is expected to continue, supported by increases in the standard of living, an ageing population and the importance of physical health. Amer Group estimates that the growth will be fastest outside the USA. (source: SGMA International 2002: Tracking the fitness movement)