Fox Factory Holding Corp, and its subsidiary, Fox  Factory, Inc., is upping its ante’ in the automotive, motorcycle and ATV industry.  A recent Fox press release is announcing that Fox has reached a definitive agreement to acquire SCA Performance Holdings.

Acquisition details

The $328M transaction which does not include vehicle inventory is being financed by Bank of America.  In the deal, Fox also agreed to an additional $13M of contingent, performance-based retention incentives for key SCA management over the next two years.

 

SCA Performance

SCA Performance is part of Fox’s acquisition deal. Image credit: SCA Performance

SCA is a leading OEM authorized specialty vehicle manufacturer.  Their Trussville Alabama headquarters specializes in light-duty trucks and SUVs.  The purchase includes SCA’s three brands, SCA Performance, Rocky Ridge Trucks and Rocky Mountain Truckworks.

Rocky Mountain Truckworks

Rocky Mountain Truckworks is included in Fox’s $328M deal. Image credit: Rocky Mountain Truckworks

Acquisition is complementary

The acquisition is complementary to its Tuscany business and will expand its North American geographic manufacturing footprint and broaden its product offerings in a growing segment of the powersports industry.  Fox says he combination of Tuscany and SCA as part of FOX’s branded portfolio provides it with a leading market position.  Additionally, the acquisition creates an opportunity to add FOX products, including lift kits and suspension components, to SCA’s vehicles.

Rocky Ridge Trucks

Rocky Ridge Trucks is the final piece of the Fox acquisition puzzle. Image credit: Rocky Ridge Trucks

Management thoughts

Fox’s Chief Executive Officer Mike Dennison had this to say about the acquisition:

“We are excited to announce the acquisition of SCA, and believe it presents a substantial opportunity for FOX to further expand its performance-defining aftermarket solutions and continue to drive growth in our Powered Vehicles Group.  We look forward to further accelerating our already significant presence in the growing specialty vehicle manufacturing market.  We welcome the experienced SCA leadership team and believe they will play an integral part in our Company’s growth going forward.”

SCA’s CEO chimed in as well saying:

“The entire SCA management team is thrilled to join FOX.  We have tremendous admiration and respect for the FOX brand, leadership, and culture of providing customers with performance-defining products.  As part of FOX we expect to build upon the success of both companies to further expand our market position and product offerings.”

Benefit summary

In a nutshell, Fox sees the following strategic and financial benefits:

  • Bolsters FOX’s Leadership Position in an Attractive Market
  • Significant Growth Potential:
  • Compelling Financial Benefits:
  • Experienced Leadership Team with Strong Track Record:
  • Reflects FOX’s Commitment to Strategic Investments:

It’s clear that Fox intends to grab as much market share it can and this acquisition is just another indicator of Fox’s intent.

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