Compass Diversified Announces Sale Of Marucci Sports To Fox Factory Holding Corp. For $572M
Portfolio Pulse from Benzinga Newsdesk
Compass Diversified (CODI) has announced a definitive agreement to sell its subsidiary, Wheelhouse Holdings, the parent company of Marucci Sports, to Fox Factory Holding Corp. (FOXF) for an enterprise value of $572 million. CODI expects to realize a pre-tax gain on the sale of between $225 million to $245 million. The proceeds will be used to pay down outstanding debt and for general corporate purposes. The transaction is expected to close in November 2023.
November 02, 2023 | 9:15 pm
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Compass Diversified is selling Marucci Sports to Fox Factory for $572 million, expecting a pre-tax gain of $225-$245 million. The proceeds will be used for debt repayment and general corporate purposes.
The sale of Marucci Sports is a significant transaction for Compass Diversified, and the expected pre-tax gain will likely have a positive impact on the company's financials. The use of proceeds for debt repayment and general corporate purposes could strengthen the company's balance sheet and potentially boost investor confidence.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Fox Factory is acquiring Marucci Sports from Compass Diversified for $572 million. The acquisition is expected to close in November 2023.
The acquisition of Marucci Sports could potentially expand Fox Factory's product portfolio and market presence. However, the impact on the company's financials will depend on the successful integration of the acquired business and its subsequent performance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100