Fox Factory Sells Marucci Sports for $225M To Reduce Debt

Fox Factory Holding Corp.—a company that designs, engineers and manufactures performance-defining products and systems for customers worldwide—announced that it has completed the sale of Wheelhouse Holdings Inc., the parent company of Marucci Sports LLC, to Squared Up Holdings LLC for an enterprise value of $225 million. Consideration is comprised of $200 million in cash at closing, subject to certain adjustments, and an unsecured subordinated convertible promissory note in the amount of $25 million (inclusive of both principal and interest) that matures on Dec. 31, 2026, according to a company press release. If the note is not satisfied in full by that date, the company has the option, but not the obligation, to convert the outstanding balance into equity of the parent company of Squared Up Holdings LLC.

Squared Up Holdings LLC is an acquisition vehicle for an investor group led by and including members of Marucci’s existing senior management. The transaction concludes the review of strategic alternatives for Marucci that the company announced in February 2026.

How Fox Factory Evaluated Strategic Alternatives for Marucci

The board of directors, with the assistance of its independent financial and legal advisors, conducted an extensive process that began with the announcement of the strategic review in February 2026 and evaluated a range of alternatives for Marucci, including retaining the business, the release noted. Over the course of the process, the company and its financial advisors contacted over 80 potential acquirers and received 15 indications of interest.

Members of Marucci management who participated in the buyer group did not take part in the company’s evaluation of proposals, and the board engaged third-party financial advisors in connection with its evaluation of the transaction. Following this process, the board approved this transaction as the best combination of value and path forward for Fox and its shareholders, the company said.

Why Fox Factory Chose to Exit the Marucci Business

Mike Dennison, Fox’s chief executive officer, commented, “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, and we determined the optimal path forward was to improve our balance sheet and reallocate capital. We remain focused on building performance products for professional athletes and the enthusiasts who follow them, and our capital allocation priorities are unchanged: pay down debt, invest organically behind our performance products to ensure we retain the leadership position we’ve earned, and hold ourselves to a high return threshold on capital investments.”

Debt Reduction & Net Leverage Impact

The $200 million of cash proceeds received at closing was applied in full to reduce outstanding borrowings under the company’s credit facility. The company incurred approximately $7.5 million in transaction-related costs, which did not reduce the closing cash proceeds, but the company intends to satisfy separately with cash on hand. Had the transaction closed on July 3, 2026, net leverage would have been approximately 2.7 times, compared to 3.7 times as reported, as calculated under the company’s credit agreement.

Annualized interest expense is reduced by approximately $16 million. Upon receipt of the $25 million deferred amount—which is payable on or before Dec. 31, 2026, under the terms of the promissory note and is not contingent on performance—the full amount is expected to be applied to further reduce outstanding borrowings at that time, resulting in an expected further reduction in net leverage and an expected cumulative reduction in annualized interest expense of approximately $17 million.

Transaction Advisors

BofA Securities, Wells Fargo Securities LLC and Stout Risius Ross LLC acted as financial advisors and Squire Patton Boggs (US) LLP acted as legal counsel to the company.