Fox Factory Divests Marucci for $225M, Books $120M Loss
FOXF sits 43% above its 52-week low of $13.08.
Summary
Fox Factory completed the $225M sale of Marucci Sports, receiving $200M cash and a $24.7M convertible note, with pro forma financials showing a $120.1M loss on disposal.
Key Events · M&A and Partnerships · FOXF
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Marucci Divestiture Completed
Fox Factory sold Marucci Sports for $225M enterprise value, receiving $200M in cash and a $24.7M unsecured subordinated convertible promissory note due December 31, 2026.
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$120.1M Loss on Disposal
Pro forma financials show a $120.1M loss on the divestiture, calculated as $225M consideration minus $337.6M net assets disposed minus $7.5M transaction costs.
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Debt Reduction
The $200M in cash proceeds were applied to reduce outstanding borrowings under the company's credit facility, which had $163M in revolver and $477.8M in term loan debt as of July 3, 2026.
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Convertible Note Terms
The $24.7M note bears 4.55% interest, with PIK interest and a $2.5M principal increase if not repaid by maturity. Fox can convert it into up to 45% of Intermediate Holdco equity.
Analysis · FOXF · Manufacturing
Fox Factory completed the sale of its Marucci Sports baseball/softball business for $225 million, receiving $200 million in cash and a $24.7 million convertible note. The pro forma financials reveal the divestiture will trigger a $120.1 million loss on disposal, driven by $413.1 million of Marucci assets being removed from the balance sheet against only $225 million in consideration. The cash proceeds were applied to reduce outstanding borrowings under the company's credit facility, improving the balance sheet but at a significant accounting cost. The note carries a 4.55% interest rate with a December 31, 2026 maturity, and if not repaid, Fox can convert it into up to 45% of the buyer's parent company equity.
How filings like this one have moved
In the 30 days to Oct 3, 2026, 28.8% of the 1640 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.58%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, FOXF was trading at $18.70 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $786M. The 52-week trading range was $13.08 to $26.02. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.