Peloton Offloads Output Park Factory in $33M Deal
The connected fitness company has officially closed the door on its push for U.S.-based manufacturing
Peloton has sold its spacious Peloton Output Park (POP) facility and land in Ohio to First Solar for a cool $33 million.
The commercial real estate transaction closed on January 11, according to Wood County records. Ohio Governor Mike DeWine alluded to the transaction in an interview with The Blade as he discussed the economic future of the state’s northwest region.
Peloton announced its Output Park endeavors in 2021, stating that the 1.2 million-square-foot space would serve as its first U.S. equipment factory, with plans to open in 2023. John Foley, Peloton co-founder and its CEO at the time, had said that the Peloton Output Park would give the connected fitness company a “massive strategic lever” to scale its Bike and Tread equipment. By 2022, and coinciding with the departure of Foley, Peloton stated it would wind down its Output Park plan.
Peloton is scheduled to release its second quarter fiscal 2024 results on February 1, 2024, marking CEO Barry McCarthy’s second anniversary as leader of the connected fitness company.
While it’s likely that Peloton will reference Output Park’s sale on its upcoming earnings call, the fitness company will also likely highlight its new Gen Z-focused content deal with TikTok, provide an update on its paid subscribers numbers and B2B deals, and discuss its ongoing international push.
As Peloton continues to rebound from post-COVID challenges, speculation is swirling that tech giant Apple could make a play for Peloton to position its Apple Fitness+ as a connected fitness dominator.
Industry predictions and rumors are commonplace, but the possibility of an Apple-Peloton deal comes with weight, as Deepwater Asset Management has listed the potential deal on its list of 2024 predictions. The firm correctly predicted nearly all of its ten predictions for 2023. However, many, including Apple insiders, are skeptical of a deal.
