Key Highlights

● Deal value: Fox Factory sold Marucci Sports for $225 million in enterprise value, comprising $200 million cash at closing plus a $25 million note maturing December 31, 2026.

● Buyer: The buyer, Squared Up Holdings, LLC, is led by Marucci's existing senior management, making the sale a management buyout.

● Leverage reduction: The transaction cut Fox Factory's net Leverage ratio from 3.7x to approximately 2.7x and is expected to reduce annualized interest expense by roughly $16 million.

● Broad process: Fox Factory's strategic review, launched in February 2026, contacted more than 80 potential acquirers and received 15 indications of interest before settling on the management-led buyer.

Fox Factory Holding Corp. completed the (NASDAQ:FOXF) sale of its Marucci Sports baseball-bat Business on September 25, 2026, receiving $225 million in Enterprise value from a buyer led by Marucci's own management team. The 8-K says Fox Factory sold all of the issued and outstanding shares of Wheelhouse Holdings Inc., Marucci's parent, to Squared Up Holdings, LLC, and used the proceeds to pay down debt.

Deal Structure: Cash Now, a Note Later

The $225 million enterprise value breaks down into $200 million in cash paid at closing, which Fox Factory applied to reduce debt, plus a $25 million unsecured subordinated convertible Promissory Note from the buyer maturing December 31, 2026. Squared Up Holdings, the Acquisition vehicle, is led by Marucci's existing senior management, meaning the sale amounts to a management buyout rather than a sale to an outside strategic or financial buyer.

Why Fox Factory Says It Sold

Fox Factory describes Marucci as a designer, manufacturer and marketer of premium wood, aluminum and composite baseball bats and other diamond-sports products. According to the company's press release, Fox Factory launched a strategic review of the business in February 2026, contacted more than 80 potential acquirers, and received 15 indications of interest before settling on the management-led buyer. Chief Executive Officer Mike Dennison said of the business, "It did not deliver the returns we expected inside Fox, and we determined the optimal path forward was to improve our balance sheet."

The Leverage Payoff

Fox Factory says the transaction cut its net Leverage Ratio from 3.7x to approximately 2.7x. The company estimates the Debt paydown will reduce annualized interest expense by roughly $16 million, and that once the $25 million note is repaid at year-end, cumulative interest expense savings will reach approximately $17 million. Transaction Costs associated with the sale were about $7.5 million.

Advisors on the Deal

Fox Factory used BofA Securities, Wells Fargo Securities and Stout Risius Ross as financial advisors, and Squire Patton Boggs (US) LLP as legal counsel. The 8-K itself, filed under Regulation FD disclosure rules, states that the furnished information is not deemed "filed" for purposes of the Securities Exchange Act, meaning it does not carry the same Liability exposure as a standard filed document; the quantitative deal terms come from the attached press release rather than the body of the 8-K.

Fox Factory's Broader Business

Fox Factory is best known as a maker of performance-defining products for bikes, trucks, SUVs and other vehicles, including ride dynamics and suspension components, as well as outdoor recreation and powered vehicle products. Marucci, acquired in 2020, had been one of the company's forays outside its core suspension and ride-performance businesses and into consumer sporting goods. The sale marks a retreat from that Diversification push back toward the company's traditional focus. The filing frames the divestiture as part of a broader effort to sharpen Fox Factory's portfolio around its core categories while strengthening its balance sheet.

Timing and Process

Fox Factory disclosed that its strategic review, launched in February 2026, evaluated a range of alternatives, including retaining Marucci within the company, before the board settled on a sale to the management-led buyer. Running a process that reached more than 80 potential acquirers and yielded 15 indications of interest suggests the company sought to test market interest broadly before concluding that a management buyout, rather than a sale to a strategic or Private Equity buyer, was the preferred outcome.

The Note Repayment Deadline to Watch

Key dates ahead: the $25 million subordinated note comes due December 31, 2026, and its repayment is what Fox Factory says will complete the full $17 million cumulative interest savings estimate. Investors should also watch Fox Factory's next quarterly results for confirmation of the reported 2.7x net leverage figure and for any further detail on how the $7.5 million of transaction costs were recognized.