BURNABY, British Columbia (BRAIN) — Fox Factory Holding Corp., the parent of the Fox suspension brand, has purchased Race Face Performance and Easton Cycling, the companies announced Friday.
The purchase price was approximately $30.2 million, according to a Fox press release.
Chris Tutton, who owned Race Face and Easton Cycling, said, "Fox is the perfect fit for Race Face/Easton. All three brands complement each other with our distinct high-performance product lines. The added operations, marketing and engineering support from Fox will allow us to innovate faster while remaining focused on our core businesses."
Fox's chief executive officer, Larry L. Enterline, said, "We are very excited to complete the Race Face/Easton acquisition and welcome their team to the Fox family."
"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. 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."
Tutton said Race Face/Easton operations will remain at their current British Columbia location with Tutton at the helm into the foreseeable future. No changes to the operation are planned, he said.
Fox Factory Holding Corp. is traded on NASDAQ under the FOXF symbol.
According to Fox, Race Face/Easton generated approximately $23.6 million in unaudited net sales in its fiscal year that ended Oct. 31, 2014. The company said it expects Race Face/Easton revenue growth in the high single-digit range, and expects to invest in Race Face/Easton to strengthen its infrastructure and maximize the long-term potential of the business. Fox said it anticipates the transaction to close by the end of 2014.
Fox was part of Compass Diversified Holdings, along with CamelBak, until Fox was spun off in an IPO in the summer of 2013. Easton Cycling was part of Easton-Bell Sports until Tutton bought the brand in April of this year.
