Race Face Performance Products Ltd and Easton Cycling President, Chris Tutton, announces the sale of both cycling brands to Fox Factory Holding Corp. (
NASDAQ: FOXF) (“FOX”).
“
FOX is the perfect fit for Race Face/Easton. All three brands complement each other with our distinct high-performance 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.”
“
We are very excited to complete the Race Face/Easton acquisition and welcome their team to the FOX family,” stated
Larry L. Enterline, FOX’s Chief Executive Officer. “
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.”
Race Face / Easton operations will remain at the current Burnaby location with Tutton at the helm into the forseeable future. No changes to the operation are planned.
FOX will acquire Race Face/Easton in an asset purchase transaction for approximately $30.2 million. The transaction was financed with debt and includes a potential earn-out opportunity of up to a maximum of $17.4 million payable over the next two fiscal years contingent upon the achievement of certain performance-based financial targets. On a combined basis, Race Face/Easton generated approximately $23.6 million in unaudited net sales and unaudited Adjusted EBITDA of approximately $4.3 million in its fiscal year ended October 31, 2014. FOX 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. The Company plans to provide 2015 guidance along with its fourth quarter and fiscal 2014 earnings announcement. The Company anticipates the transaction to close by the end of 2014.
About Race Face Performance ProductsBased in Vancouver, B.C., Canada, Race Face Performance Products designs and manufactures leading-edge performance cycling components, clothing, and protection. Race Face products are distributed in more than 40 countries globally. The company sponsors a number of professional riders. For more information, visit
raceface.com. like
facebook.com/RacefacePerformance or follow us on Instagram and Twitter
@RaceFace604.
About Easton CyclingEaston cycling is two parts science and one part passion. Born at the 1984 Olympic games in Los Angeles, California, Easton Cycling exists for one reason - to make bikes better. Easton Cycling is a leader in composite design, engineering, and manufacturing for the bicycle industry. It delivers a full range of carbon and aluminum wheelsets and components to manufacturers and riders globally. For more information, visit
eastoncycling.com. like
facebook.com/eastoncycling or follow us on Twitter
@eastoncycling and Instagram
@easton_cycling.
business. Of course fox is going to use all their infrastructures for move to a best site and join all the factorys plus easton and havoc. So we have that after read this message that i write,you can see that it has no meaning and it's useless.
Step 1: remove wheel
Step 2: remove the brake caliper
Step 3: Remove the boxxers from your bike frame
Step 4: throw the boxxers in the garbage and get a real fork..
See easy..;-)
It's simple as that.
Every manufactory has it's own policy for service interval. They make it because they think it's good for their product, if you think you don't need to service your product as recommended by manufactory, that's your call dude.
funny I run 1 fox fork for less than a season and have 100000 problems with it, but run a Marzocchi for years and never have an issue...
it's not like I'm making crap up here.
FOX will acquire Race Face/Easton in an asset purchase transaction for
approximately $30.2 million. The transaction was financed with debt and
includes a potential earn-out opportunity of up to a maximum of $17.4 million
payable over the next two fiscal years contingent upon the achievement of
certain performance-based financial targets. On a combined basis, Race
Face/Easton generated approximately $23.6 million in unaudited net sales and
unaudited Adjusted EBITDA of approximately $4.3 million in its fiscal year
ended October 31, 2014. FOX 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. The Company plans to provide 2015 guidance along with its fourth
quarter and fiscal 2014 earnings announcement. The Company anticipates the
transaction to close by the end of 2014.
Start with $1,000,000.
Start with $8,000,000'
Start out a BILLIONAIRE!!
I have two nickels to rub together (this week).
I ended up cracking that Crack-N-Fail and I didn't seem to have problems with the rear wheel --- go figure.
On a side note -- cracked 3 Crack-N-fails before giving up on the Cannondale company. life time warranty -- whatever, just provide a product that doesn't fail under normal use.
Its not the steerer as many assume....
Too light and too fragile = CSU needs beefing up as currently the assembly grease leaches out of stanchion / crown interface with regular use and especially bike cleaning.
Now Sram/Rockshox are one and the same thing and Fox are buying up brands too.
How times have changed!
Paying 7x EBITDA seems a little rich but Race Face seems to have turned the corner a bit with products like the Next SL cranks so maybe they can grow the whole thing better than RF could as a stand alone.
Total market cap of FOX is $527M...who knew.
Addendum 4:3 Said company "FOX" will use the man "Tippie" for further marketing and video shenanigans. See also "Just the tip"
id guess cheaper RF controls with continually ho-hum easton wheels being added as OEM riders (no pun) to bikes being spec'd with fox suspension. and more doss spec'd too
Race Face is woven into the fabric of the Greater Vancouver mountain biking scene, fingers crossed things remain as they are.
Hope RF stays local.
The question is though, where does this leave Shimano? The partnership, if you look at it from that perspective, now makes 3 sets of hoops, 3 sets of controls, 2 sets of dropper posts, 2 sets of cranks (well, some are carbon, ss far as differentiation goes), etc.
Can you say consolidation?
SRAM (Rock Shox), if there's a problem, man... they turn it around fast, real fast...+/-72 hours... not so much with Fox and Zoke is by far the worst but, really... why does Fox often take no less than 2, 3 weeks... it's often 2 weeks before they even look at a warranty. and no, I'm not counting the travel time of shipping.
With SRAM, several times they sent a brand new product, no questions asked, sent me a brand new product with a call tag for the warranty item.. Fox never did anything like that for Pshop.
Zoke is on a whole other level when it comes to fixing warranty items --- by far the worst. I send a Rocco back for service and it was at least 2 months before we got it back. 2 rides after the guy put back on his bike it broke (split in half broke). one thing lead to another and we just sold the guy a different rear shock at cost. never looked back at Zoke.
Fox usually does it right when fixing a warranty but geeez, the turn around time is dreadful. That needs improvement, big time.
Lazer Berms
If Only RF could have stood long enough on their own the would have pumped out some amazing forks in the future to further bury rockfox.
my last bike was equipped with fox, i didn't even make it outta the store before i was told hold it right there time for service or void warranty. consequently the bike never leaves the shop. just constant service.
This is a really sad announcement.
Time for moar companies like OneUp components.
Does anyone know, has RF been shopping for people with this expertise lately?
Good luck to them.
Congratulations to Fox!