Fox Factory To Acquire Race Face and Easton
SCOTTS VALLEY, USA – Fox Factory Holding Corporation is to acquire all assets of Race Face and Easton Cycling businesses. Race Face/Easton designs, manufactures, and distributes high-performance mountain and road bike wheels and other cycling components including cranks, bars, stems, and seat posts.
Fox will invest approximately US$ 30.2 million (24.4 million euro) for the Race Face/Easton acquisition. Race Face/Easton generated approximately US$ 23.6 million (19.1 million euro) in net sales and a gross profit of approximately US$ 4.3 million (3.5 million euro) in its fiscal year ended October 31, 2014.
Execution of strategic initiatives
“This transaction demonstrates the execution of our strategic initiatives to increase Fox’s product penetration into both existing and adjacent product categories to help drive our bike sales and profitability long-term,” stated Larry L. Enterline, CEO of stock listed Fox Factory Holding. “We look forward to leveraging our global marketing, engineering, distribution, and supply chain resources to collectively develop next-generation, high-performance bicycle ride dynamics solutions.”
“Fox and Race Face/Easton are a perfect fit as we complement each other with our distinct mountain bike product lines,” said Chris Tutton, President of Race Face/Easton. “The added operations, marketing, and engineering support from Fox will allow us to innovate faster while remaining focused on our core businesses.”