Fox Factory to Sell Marucci Parent for $225 Million
The suspension maker is exiting the sports-equipment brand after a February review, citing weaker-than-expected returns and a need to strengthen its balance sheet.
Fox Factory Holding Corp. (FOXF) agreed to sell Wheelhouse Holdings Inc., the parent of Marucci Sports LLC, for an enterprise value of $225 million in a mixed-consideration transaction.
The sale closes a strategic review of Marucci that Fox Factory began in February 2026. The company said the sports-equipment business did not deliver the returns it expected inside Fox, and that the optimal path forward was to improve the balance sheet and reallocate capital.
Mike Dennison, Fox Factory’s chief executive officer, said 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.” He added that the brand “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.”
Fox Factory, a premium brand and global leader in performance products and systems, has been running a profit-optimization program alongside the Marucci review. In the second fiscal quarter ended July 3, 2026, the company reported net sales of $358.1 million, compared with $374.9 million a year earlier, and said powersports remained a source of strength. Adjusted EBITDA was $45.5 million, including about $2 million of IEEPA tariff refunds, and the adjusted EBITDA margin expanded 300 basis points sequentially to 12.7%.
The company said the profit-optimization initiative delivered more than $25 million of gross savings in the first half and that operational improvements were intended to support second-half margin despite tariff, commodity, and freight headwinds. It also said it had reduced net debt by $9.1 million since fiscal 2025 year-end and improved the cash conversion cycle by about 12 days year over year.
In the fourth fiscal quarter ended January 2, 2026, Fox Factory reported a net loss of $287.0 million, or $6.86 a share, compared with a net loss of $0.1 million, or $0.00 a share, in the year-ago quarter. Full-year fiscal 2025 net sales were $1.467 billion. The company said Phase 1 of its profit-optimization plan yielded about $25 million in savings, primarily offset by a realized net tariff impact of about $25 million, and that it had paid down $33 million of debt year over year. It also announced Phase 2 of the plan, with targeted incremental savings of about $40 million to be realized in 2026.
Fox Factory framed the Marucci sale as a capital-reallocation step rather than a growth bet on the sports-equipment brand. The company intends to use the transaction to strengthen the balance sheet and redirect resources, after concluding that the brand’s contribution inside Fox had not matched the returns it expected.