Fox Factory Holding Corp. agreed to acquire Custom Wheel House, LLC (CWH) from Thompson Street Capital Partners and other sellers for $131.6 million.
CWH, headquartered in Rancho Dominguez, CA, manufactures wheels, off-road tires and accessories. The family of brands includes its flagship brand, Method Race Wheels, Tensor Tire, and GMZ Race Products, geared toward the manufacturing and distributing off-road performance products for automotive, truck and utility vehicles.
This acquisition complements Fox’s upfitting and lift kit business and broadens its product offering in a growing automotive industry segment.
The addition of CWH and its brands will “broaden and diversify Fox’s range of aftermarket vehicle offerings, create a dedicated supplier with CWH’s established manufacturing footprint and supplier network and brings experienced leadership with the addition of CWH’s executive team,” said Fox Factory Holding Corp.
“We are excited to announce the acquisition of Custom Wheel House and believe it presents a substantial vertical integration and collaborative opportunity for Fox. This will further expand our performance-defining aftermarket solutions with high-performance wheels and performance off-road tires,” stated Mike Dennison, Fox’s chief executive officer. “When pushing the limits of ride dynamics, expanding the company’s expertise from suspension to wheels and tires is a natural evolution. We welcome the experienced Custom Wheel House leadership team and believe they will play an integral part in the company’s growth going forward.”
The purchase will be financed with cash and borrowings from the company’s line of credit. The transaction is expected to close late in the first quarter of 2023, subject to customary closing conditions and to be accretive to the company’s fiscal 2023 financial results.