Fox Factory Sells Marucci for $225M After $572M Buyout

Fox Factory has sold its Marucci Sports baseball business to a management-led buyer for $225 million, a steep loss on the $572 million it paid in 2023.

Fox Factory Holding Corp (NASDAQ: FOXF) has completed the divestiture of Wheelhouse Holdings, the parent company of Marucci Sports, selling the baseball and softball gear maker to Squared Up Holdings for a total enterprise value of $225 million, according to Bicycle Retailer & Industry News and GuruFocus. Fox bought Marucci for $572 million in 2023, meaning the sale recoups less than half the original purchase price. The deal comprises $200 million in cash paid at closing plus a $25 million unsecured subordinated convertible promissory note that matures on December 31, 2026. GuruFocus reports that Fox also incurred approximately $7.5 million in transaction costs, funded from its own cash reserves.

The scale of the loss is the story's sharpest edge. What makes the outcome unusual is that Marucci was not a distressed brand: Dennison called it 'a strong brand with talented people and a loyal following among athletes' that should succeed under new ownership, yet it still failed to earn its keep inside a company whose core competence is suspension products for bikes and powered vehicles.

The winning bidder, Squared Up Holdings, is an acquisition vehicle for an investor group led by and including members of Marucci's existing senior management — effectively a management buyout of the brand. Marucci also owns the Lizardskins brand, which began as a bicycle handlebar brand and continues to sell bike products alongside grip tape for bats and other sports equipment.

The financial backdrop explains the urgency: Bicycle Retailer & Industry News reports Fox posted a first-half net loss of $10.9 million, with EBITDA of $81.2 million — including roughly $2 million in IEEPA tariff refunds — down from $88.9 million a year earlier. GuruFocus notes the company's Price-to-Sales ratio stands at 0.56, well below its historical median of 2.89, and that earnings-based metrics are not meaningful because the company is currently unprofitable. The sale also reorganizes Fox's Specialty Sports Group around its bike brands: Fox, Marzocchi, Ride Concepts, RaceFace, and Easton. Dennison said capital priorities are unchanged — pay down debt, invest organically in performance products, and hold a high return threshold on investments.