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News Archive
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Precor takes next step in leadership quest,
acquires ClubCom, Cardio Theater
Technology platform, entertainment hardware key to "total
product" vision
Woodinville, WA (January 23, 2004) - 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
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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 InSiteT
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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