Fox Factory to Sell Marucci Business to Wheelhouse
The suspension maker is exiting premium diamond-sports bats and plans to use the proceeds to cut outstanding debt.
Fox Factory, Inc. (FOXF) agreed to sell its Marucci Business to Wheelhouse Holdings Inc. for $200,000 in cash and a $25,000 promissory note, an asset-purchase deal that removes the premium wood, aluminum and composite baseball-bat franchise from the suspension and performance-parts company.
The Marucci Business covers premium wood, aluminum and composite baseball bats and other diamond sports products. Fox Factory intends to use the proceeds to reduce outstanding indebtedness.
The transaction is structured as an asset purchase rather than a stock sale, and the consideration is a mix of cash and a short-term note. The company did not disclose a premium, an exchange ratio, or an expected close date in the announcement.
Fox Factory’s stated use of the proceeds is debt reduction, not a bolt-on into another product line. The sale therefore functions as a portfolio trim: the suspension maker is exiting a consumer-sports product set that sits outside its core performance-parts franchise and applying the cash to the balance sheet.
The $200,000 cash component and the $25,000 promissory note together form the full purchase price as announced. Wheelhouse Holdings Inc. is the buyer of the Marucci assets.
No further conditions, regulatory clearances, or closing timetable were provided in the release. The company’s stated plan is to direct the proceeds toward paying down outstanding indebtedness once the asset purchase is complete.