Fox Factory Sold Marucci Sports for $225 Million
The company offloaded the sports brand after it failed to meet expected financial returns.
Updated on Sept. 25, 2026 in Baseball
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Fox Factory Holding Corp. has completed the sale of Marucci Sports LLC to Squared Up Holdings LLC for $225 million. The deal concludes a strategic review initiated earlier this year after the brand underperformed.
Why it matters
Fox Factory sold the unit to clean up its balance sheet and reallocate capital after original projections for the 2023 acquisition fell short. The sale significantly reduces the company's interest expenses and total debt load.
The transaction includes $200 million in cash at closing and a $25 million unsecured subordinated convertible note maturing in December 2026. Fox Factory reduced its annualized interest expense by $16 million following the sale.
The players
Fox Factory Holding Corp.
This is a designer and manufacturer of performance-defining ride dynamics products for various vehicles.
Marucci Sports LLC
This is a manufacturer and retailer of baseball bats, gloves, and other sports equipment.
Squared Up Holdings LLC
This is the entity that acquired the baseball equipment manufacturer from Fox Factory.
The details
Fox Factory contacted over 80 potential acquirers and evaluated 15 indications of interest before selecting the buyer. The company incurred $7.5 million in transaction-related costs to finalize the sale and reduce its credit facility debt.
Timeline
Fox Factory acquired Marucci Sports in November 2023.
A strategic review of the brand was announced in February 2026.
The sale transaction was completed on September 25, 2026.
The promissory note matures on December 31, 2026.
Season Trajectory
This divestiture marks a strategic retreat for Fox Factory as it moves away from its recent expansion into specialized sports equipment. The move stabilizes the company's financial standing and shifts its focus back to its core automotive and ride dynamics business.
The transaction reduces Fox Factory's pro-forma net leverage ratio to 2.7 times, improving its overall financial flexibility. Investors can expect a cumulative reduction in annualized interest expense of $17 million once the final note payment is processed.
The takeaway
Companies frequently divest non-core assets to focus on primary operations during periods of economic tightening. This sale demonstrates how quickly corporate strategies can pivot when initial acquisition performance fails to align with long-term financial goals.
What happens next
The company expects to apply the proceeds from the $25 million convertible promissory note to debt reduction when it reaches maturity on December 31, 2026.
Further reading
For more on industry shifts, visit the Baseball section.
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