"The strategic, accretive acquisition of RideTech is well-aligned with our mission of improving vehicle performance, delivering best-in-class service, and entering into strategic adjacent markets," said Mike Dennison, FOX's Powered Vehicles Group president. "We believe the powered vehicles market remains an attractive, long-term growth opportunity for FOX and that RideTech will continue on its path of growth as they leverage our global marketing, engineering, distribution, and supply chain resources."
The acquisition agreement remains subject to various closing conditions. Fox Factory will acquire RideTech in an asset purchase transaction for approximately $14 million through a combination of cash on hand and newly issued unregistered shares of common stock of Fox. For 2019, Fox expects RideTech to contribute sales of $6 million to $8 million after elimination of inter-company sales. The transaction is anticipated to close this month.
"We are excited to be joining the FOX team and believe the expected synergies between us will enable RideTech to more effectively design and optimize suspension systems and quickly broaden our combined customer base by utilizing FOX's infrastructure to efficiently deliver aftermarket on-road car and truck suspension products and services,” said Bret Voelkel, founder of RideTech.
RideTech offers a wide range of air suspension systems, coil-overs, shock absorbers, coil and leaf springs, tubular control arms, roll bars, and sway bars for muscle cars, trucks, sports cars and hot rods.