Fox Factory Holding Corp. completed the sale of Marucci Sports LLC, to Squared Up Holdings, LLC, an investor group led by Marucci’s senior management, for an enterprise value of $225 million, well below the $572 million it paid for the baseball bat and glove business in 2023.

The transaction concludes the review of strategic alternatives for Marucci that the company announced in February 2026.

Marucci’s brands include Marucci, Victus, Baum, and Lizard Skins.

In acquiring the business in November 2023, Fox said the addition marked a continuation of its diversification strategy, expanding its business away from selling through OEMs (original equipment manufacturers) into the aftermarket space. Synergies cited included a similar focus on “highly-engineered product,” the shared use of aluminum and composite materials, as well as a similar emphasis on delivering innovation for elite athletes.

In announcing the review this past February, Fox cited a shift to focus on core assets “to ensure the portfolio aligns with the company’s profitability standards and strategic objectives.” In the fourth quarter, Fox took a goodwill impairment charge of $295.2 million related to its share price decline amid disappointing results.

The company has been seeing prolonged weakness in its Specialty Sports Group (SSG), largely due to continued channel destocking in its cycling business, which includes the like Fox, Marzocchi and RaceFace brands. The Powered Vehicle Group (PVG) segment was also hurt last year by an aluminum supply shortage that temporarily halted Ford F-150 chassis production into late Q3 2026.

Profitability at Marucci, which was included in the SSG business, was also below historical levels last year due to cautious ordering by retailers in the bat category, although softball sales have been a bright spot.

Mike Dennison, Fox’s CEO, commented in a statement detailing the sales announcement, “Marucci is a strong brand with talented people and a loyal following among athletes, and we believe it is well positioned for continued success under new ownership. It did not deliver the returns we expected inside Fox, and we determined the optimal path forward was to improve our balance sheet and reallocate capital. We remain focused on building performance products for professional athletes and the enthusiasts who follow them, and our capital allocation priorities are unchanged: pay down debt, invest organically behind our performance products to ensure we retain the leadership position we’ve earned, and hold ourselves to a high return threshold on capital investments.”

Fox Factory said over the course of the review process, the company and its financial advisors contacted over 80 potential acquirers and received 15 indications of interest. Members of Marucci management who participated in the buyer group did not take part in the company’s evaluation of proposals, and the Board engaged third-party financial advisors in connection with its evaluation of the transaction. Following this process, the Board approved the transaction “as the best combination of value and path forward for Fox and its shareholders.”

The purchase price comprised of $200 million in cash at closing and an unsecured subordinated convertible promissory note in the amount of $25 million that matures on December 31, 2026. If the note is not satisfied in full by that date, the company has the option, but not the obligation, to convert the outstanding balance into equity of the parent company of Squared Up Holdings, LLC.

Squared Up Holdings, LLC is an acquisition vehicle for an investor group led by and including members of Marucci’s existing senior management. Marucci’s management is led by Kurt Ainsworth, the company’s CEO and a co-founder of the business.

The $200 million of cash proceeds received at closing was applied in full to reduce outstanding borrowings under the company’s credit facility. The company incurred approximately $7.5 million in transaction-related costs, which did not reduce the closing cash proceeds but the company intends to satisfy separately with cash on hand.

Fox said had the transaction closed on July 3, 2026, net leverage would have been approximately 2.7 times, compared to 3.7 times as reported, as calculated under the company’s credit agreement. Annualized interest expense is reduced by approximately $16 million. Upon receipt of the $25 million deferred amount, which is payable on or before December 31, 2026 under the terms of the promissory note and is not contingent on performance, the full amount is expected to be applied to further reduce outstanding borrowings at that time, resulting in an expected further reduction in net leverage and an expected cumulative reduction in annualized interest expense of approximately $17 million.

BofA Securities, Wells Fargo Securities, LLC and Stout Risius Ross, LLC acted as financial advisors and Squire Patton Boggs (US) LLP acted as legal counsel to the company.

Image courtesy Marucci Sports