Fox Factory is looking to acquire baseball and softball equipment brand Marucci Sports for $572 million.
Bicycle Retailer reports Fox Factory is acquiring the owner of Lizard Skins’ parent company Wheelhouse Holdings, Inc. from Compass Diversified for the sum of $572 million.
The purchase will mark Fox’s first sports acquisition since it bought Marzocchi back in 2015, more recent acquisitions were related to its powered-vehicle business.
The holding company Compass has an interesting history with Fox and the bike industry as it previously owned Fox for a number of years and was a former owner of CamelBak before it sold the brand to Vista Outdoor in 2015. Outside of the sale of Marucci Sports to Fox Factory, Compass still owns some cycling-related brands including BOA Technology and PrimaLoft.
Fox Factory’s purchase of Marucci Sports comes after it announced a company-wide revenue drop of 19% in its third-quarter earnings report. Net income dropped from $50.8 million in the same quarter last year to $35.3 million this year, a fall of 30%.
The company’s Specialty Sports Group, featuring the brands Fox Factory, Marzocchi, Easton cycling and Race Face, saw a drop in net sales of 58% from $173.9 million last year to $72 million this year in the same quarter.
Fox Factory said the drop in sales from the Specialty Sports Group was due to “higher levels of inventory across various channels.”
2023-11-07 02:10:28
#Fox #Factory #Buy #Lizard #Skins #Parent #Company
