FOR IMMEDIATE RELEASE:
January 23, 2004
Precor takes next step in leadership quest, acquires ClubCom, Cardio Theater
Technology platform, entertainment hardware key to "total product" vision
Woodinville, WA - On the heels of acquiring commercial strength company Icarian, Precor takes another step toward global leadership with the acquisition of entertainment technology leader ClubCom, including its Cardio Theater division.
"ClubCom and Cardio Theater add a technology backbone to Precor's promise of fitness industry leadership through a 'total product' of value-added services," said Precor president Paul J. Byrne. "We have an aggressive growth plan, and with the backing and resources of our parent company, Amer Group, we're concentrating on global leadership through a broader range of products and services than seen in the market today."
ClubCom is the global leader in private television networks to clubs and fitness facilities, offering customized audio/video entertainment, network systems and advertising, with proprietary technology enabling facilities to customize content as well as prepackaged ads promoting in-house services.
Precor is purchasing ClubCom's technology and content divisions, while ClubCom's advertising division is being spun off as a separate company owned by a group of ClubCom investors. In addition to the in-house promotional advertising, external advertisers can purchase spots within ClubCom programming.
Cardio Theater is the market leader in video and audio systems used within clubs and fitness facilities. Precor's goal is to elevate Cardio Theater's responsiveness to customer needs, manufacturing to rate-of-demand, and product quality to Precor's world-class standards.
Byrne said that Precor plans for both Cardio Theater and ClubCom to offer open platform systems available to manufacturers, clubs and fitness facilities.
ClubCom will operate as an independent subsidiary. In addition to providing open-platform entertainment network services to a variety of customers, ClubCom will collaborate with Precor on new technologies, such as Precor's InSiteTM wireless information service for club and facility management.
The acquisition closely follows Precor's January 12 purchase of Fitness Products International, which manufactures the Icarian strength equipment line. With that acquisition, Precor rounded out its product offering for a consolidating commercial market focused on stronger relationships with suppliers offering a complete range of products.
Precor also recently expanded its total-product service offering by introducing a new leasing program for commercial customers.
Precor's Byrne said ClubCom's proprietary technology and expertise are a platform for value-added services of the future.
"Fitness equipment providers today offer a narrow band of hardware products and services -- tomorrow's total product will deliver a great exercise experience, and converge entertainment, operational and experiential technologies," said Byrne. "Every fitness facility wants to increase member retention and run a more profitable and financially successful business. These new products, services and technologies will make facilities more successful financially, and be key to greater customer satisfaction."
ClubCom founder and president Tom Lapcevic affirmed Byrne's view that the fitness equipment market is a narrow offering today compared to total-product possibilities.
"Today, entertainment is the most visible and accepted technology, but both in terms of capability or market penetration, we've only scratched the surface," said Lapcevic, who will be president of ClubCom. "Entertainment technology will maintain its primacy in the short term, but soon it will be joined, and perhaps surpassed, by additional technology-driven services that benefit the fitness facility and its members."
ClubCom will maintain operations at its Pittsburgh, PA facility.
The purchase price was $22 million. Further details or terms of the acquisition are confidential.
About Precor
Founded in 1980, Precor is headquartered northeast of Seattle in Woodinville, Wash., with international offices in the United Kingdom, Germany, Benelux, Austria Japan and China. One of the largest fitness equipment manufacturers in the United States, Precor sets the standard for innovation and excellence in product quality, customer service and delivering a natural, low-impact workout experience. Precor is part of Amer Group Plc (www.amersports.com), a leading global sports equipment company.
Other companies in the Amer Sports group are Wilson, a world-class manufacturer of a variety of sports equipment; Suunto, the world's leading manufacturer of sports instruments which help improve sports performance; and Atomic, one of the world's leading manufacturers of winter sports equipment.
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