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Fox Factory eyes up to $600 million term loans for Marucci purchase
By Wendy Van Sickle
Columbus, Ohio, Nov. 2 – Fox Factory Holding Corp. plans to obtain additional term loans under its existing credit facility to fund its acquisition of Wheelhouse Holdings, Inc., the parent company of Marucci Sports, LLC, from Compass Diversified and some other sellers, according to a news release.
To support its capital allocation strategy, including the Marucci transaction, the company said it entered into a commitment letter to secure a term loan in an amount not to exceed $400 million and a delayed-draw term loan not to exceed $200 million through its existing credit facility. The interest rate is expected to be 50 basis points higher than the current rate of the company’s revolving credit facility.
Fox said the additional debt “will provide the liquidity needed to pursue capital allocation priorities including future organic and inorganic growth opportunities and the cushion to withstand macroeconomic or geopolitical shocks.”
The purchase price for the Marucci transaction is based on an enterprise value of $572 million.
Fox said it expects Marucci to be accretive to both growth and EBITDA margins, helping the company to achieve its 2025 target of $2 billion sales and 25% adjusted EBITDA margin.
The transaction is expected to close this month.
Fox Factory is a Scotts Valley, Calif.-based manufacturer of high-performance ride dynamics products primarily for bicycles, side-by-side vehicles, on-road and off-road vehicles and trucks, all-terrain vehicles, snowmobiles, specialty vehicles and applications, and motorcycles. Marucci is a manufacturer and distributor of baseball, softball and other sports equipment with headquarters in Baton Rouge, La.
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