Fox Factory has finalized the sale of Marucci Sports—the parent company of athletic and cycling brand Lizard Skins—to a management-led investor group known as Squared Up Holdings for an enterprise value of $225 million. The transaction, announced on September 25, sees the manufacturer offload its baseball and softball equipment division just a year after acquiring it for $572 million in 2023.
Debt Reduction Driving the Divestment
Under the terms of the agreement, Fox Factory receives $200 million in cash alongside a $25 million unsecured promissory note maturing on December 31. According to financial disclosures, the company is dedicating the entirety of the cash proceeds and the scheduled $25 million note toward reducing its corporate debt. If Squared Up Holdings fails to clear the promissory note by year’s end, the agreement allows for the note to be converted into equity capital within Marucci.
The divestment concludes a formal strategic review launched by Fox Factory in February. Advisers contacted more than 80 prospective buyers, ultimately drawing 15 expressions of interest before settling on the management-backed acquisition vehicle.
Financial Pressure and Performance Realities
During the first half of its fiscal year, Fox Factory posted a net loss of $10.9 million. Mike Dennison, the chief executive officer of Fox, addressed the performance gap in the official transaction announcement.
“Marucci is a solid brand, with talented teams and a loyal customer base among athletes, and we believe it is well-positioned to continue to succeed under a new owner,” Dennison stated. “It has not delivered the returns that we expected within Fox.”
Lizard Skins and Core Cycling Portfolio
While Marucci is primarily recognized as a heavyweight in baseball and softball equipment, the portfolio acquisition directly impacts the cycling industry through Lizard Skins. The brand originally entered the market with handlebar grips and accessories before expanding into high-grip wraps for baseball bats and other sports gear. Lizard Skins now shifts ownership alongside Marucci back to a leadership group intimately familiar with its operations.
Following the sale, Fox Factory retains its primary cycling ecosystem. The company’s remaining mountain bike and component operations continue under its core brands, which include Fox, Marzocchi, Ride Concepts, RaceFace, and Easton.
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