Fox Factory Holding Corp. (NASDAQ: FOXF) has completed the sale of Marucci Sports to Squared Up Holdings, LLC for a total enterprise value of $225 million, according to a company statement.

The transaction involved $200 million in cash at closing, which was applied in full to reduce outstanding borrowings under the company's credit facility. The remaining $25 million is structured as an unsecured subordinated convertible promissory note, inclusive of principal and interest, maturing December 31, 2026. If the note is not repaid by that date, Fox Factory has the option to convert the outstanding balance into equity of Squared Up Holdings' parent company.

Squared Up Holdings is an acquisition vehicle led by members of Marucci's existing senior management team. Those management members did not participate in Fox Factory's evaluation of acquisition proposals.

The sale reduces Fox Factory's net leverage from 3.7 times to approximately 2.7 times, based on figures as of July 3, 2026. Annualized interest expense is reduced by approximately $16 million, with the total expected reduction reaching approximately $17 million once the $25 million note is received and applied to debt.

The company incurred approximately $7.5 million in transaction-related costs, which it intends to cover separately using cash on hand.

The divestiture concludes a strategic review of Marucci that Fox Factory announced in February 2026. During that process, the company and its financial advisors contacted more than 80 potential acquirers and received 15 indications of interest.

CEO Mike Dennison stated, "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."

BofA Securities, Wells Fargo Securities, and Stout Risius Ross acted as financial advisors to Fox Factory, with Squire Patton Boggs serving as legal counsel.