WOODINVILLE, Wash. — Precor is among the key assets authorized for sale by the Illinois Tool Works' board of directors, who have voted to divest its consumer products division, according to a press release from Precor.
Precor became a subsidiary of Illinois Tool Works (ITW) — an international manufacturer of engineered components and industrial systems primarily for the automotive and construction industries — in 1999. After ITW acquired the fitness company, Precor increased its revenue per employee by 64 percent, cut raw material inventories in half, and increased overall production efficiencies by one-third, the release claimed. The release also stated that Precor further reduced warranty costs by 57 percent.
The press release included comments from Paul Byrne, Precor's president, who explained that the fitness equipment company has benefited from ITW ownership: “Precor earned and reinforced a reputation for product innovation and quality, and a superior customer and end-user experience. Working with ITW, we complemented those strengths with operational practices that made us even more efficient and financially stronger. Especially in today's market, financial strength, product quality and customer service are the critical measures of success.”
Byrne also claimed that much of Precor's recent gains stem from the company's adoption of ITW's most essential business practice: achieving operational excellence by focusing on core competencies that add value and drive customer satisfaction. For that reason, he believes Precor will make a valuable addition to any company that purchases it.
“The market has become extremely challenging for business models that are reliant on dramatic sales increases, or are highly leveraged or operationally inefficient,” Byrne said. “Precor is very well positioned for a market that values financial stability, and product and service quality.”