Fox Factory Holding Corp. has completed the sale of its subsidiary Wheelhouse Holdings, which operates the baseball bat brand Marucci, to Squared Up Holdings, LLC. The transaction, valued at an enterprise value of $225 million, closed on September 25, 2026.
Under the terms of the Stock Purchase Agreement, the purchase price was paid through a combination of cash and a promissory note. Fox Factory received $200 million in cash, subject to certain closing adjustments, and a $25 million unsecured subordinated convertible promissory note. The cash proceeds were applied to reduce outstanding borrowings under the Company’s credit facility. Additionally, Fox Factory incurred approximately $7.5 million in transaction costs, which will be paid separately from cash on hand.
The promissory note, issued by Squared Up Holdings, carries an interest rate of 4.55% per annum. Interest will be paid in kind (PIK Interest) by increasing the outstanding principal balance on the first day of each calendar quarter starting January 1, 2027. The note matures on December 31, 2026, and includes provisions for automatic principal increases and conversion into equity of the parent company of the Purchaser if not repaid in full by the maturity date.
Following the divestiture, Fox Factory has filed unaudited pro forma financial information. The pro forma balance sheet as of July 3, 2026, reflects the removal of assets and liabilities associated with the Marucci Business, resulting in a total asset decrease of $168.1 million. The pro forma statements of operations for the fiscal year ended January 2, 2026, and the six months ended July 3, 2026, show a reduction in net sales and cost of sales, as well as a loss on disposal of $120.1 million.
