Fox Factory Holding Corp. (NASDAQ: FOXF) has completed the sale of Wheelhouse Holdings Inc., the parent company of Marucci Sports LLC, to Squared Up Holdings LLC for an enterprise value of $225 million.

The transaction includes $200 million in cash at closing and a $25 million unsecured subordinated convertible promissory note, inclusive of principal and interest, due December 31, 2026. If the note is not fully satisfied by the maturity date, Fox Factory has the option, but not the obligation, to convert the outstanding balance into equity of the parent company of Squared Up Holdings LLC.

Fox Factory said the $200 million in cash received at closing was applied in full to reduce borrowings under its credit facility. The company expects to apply the $25 million note proceeds toward further debt reduction when received.

Squared Up Holdings LLC is an acquisition vehicle for an investor group led by and including members of Marucci’s existing senior management. Following the transaction, Marucci is no longer part of the Fox Factory portfolio and will operate under its new ownership.

Fox Factory began a strategic review of Marucci in February 2026. During the process, the company and its financial advisors contacted more than 80 potential acquirers and received 15 indications of interest. Members of Marucci management who participated in the buyer group did not take part in Fox Factory’s evaluation of the proposals.

Fox Factory CEO Mike Dennison said that Marucci is a strong brand with talented people and a loyal following among athletes, but it did not deliver the returns the company expected while operating within Fox Factory. The company therefore determined that the transaction would improve its balance sheet and allow it to reallocate capital.

Following the transaction, Fox Factory’s net leverage was reduced from 3.7 times to approximately 2.7 times, while annualized interest expense decreased by approximately $16 million. Once the $25 million note is paid and applied toward debt reduction, the total annualized interest expense reduction is expected to reach approximately $17 million.

Fox Factory acquired Marucci in 2023 for $572 million.

Photo: Marucci