IN BRIEF
Fox Factory announced on 25 September the sale of Marucci Sports, its baseball equipment business which also owns the cycling brand Lizard Skins, for an enterprise value of $225 million. The buyer, Squared Up Holdings, brings together investors led by Marucci’s management. Fox receives $200 million in cash, applied to reducing its debt, plus a $25 million promissory note. The group had paid $572 million for Marucci in 2023.
Fox Factory, whose cycling business runs through the Fox, Marzocchi, Ride Concepts, RaceFace and Easton brands, is parting ways with Marucci Sports, the baseball and softball equipment specialist it bought in 2023.
Fox Factory sells Marucci to its management
According to the press release, Fox has completed the sale of Wheelhouse Holdings, the parent company of Marucci Sports, to Squared Up Holdings, for an enterprise value of $225 million. Squared Up is an acquisition vehicle for a group of investors led by members of Marucci’s current management, Bicycle Retailer notes.
The payment comprises $200 million in cash, which Fox is applying to paying down its debt, and a $25 million unsecured promissory note maturing on 31 December. According to Bicycle Retailer, Fox also plans to put that $25 million towards deleveraging; if it is not paid, the note can be converted into equity in Marucci. Fox says it had been reviewing its options for Marucci since February, contacted more than 80 potential buyers with its advisers and received 15 indications of interest.
Lizard Skins changes hands along with Marucci
For cyclists, the deal mainly concerns Lizard Skins. According to Bicycle Retailer, this Marucci brand started out in cycling, with handlebar products, now supplies grip material for bats and other sports equipment, and still sells cycling products.
Fox had bought Marucci for $572 million in 2023. “Marucci is a strong brand with talented people and a loyal following among athletes, and we believe it is well positioned for continued success under new ownership. It did not deliver the returns we expected inside Fox,” says Mike Dennison, Fox’s chief executive, in the press release. In the first half of its financial year, the group posted a net loss of $10.9 million, according to Bicycle Retailer.
