Fox Factory Holding Corp. Closes Purchase of Substantially All Assets of Ridetech
May 06 2019 - 3:05PM
Fox Factory Holding Corp. (Nasdaq: FOXF) ("FOX" or the "Company")
today announced the closing of the previously announced Air Ride
Technologies, Inc. dba Ridetech asset purchase transaction,
effective May 3, 2019. Ridetech is a manufacturer of suspension
systems that enhance the handling and ride quality of
muscle cars, trucks, sports cars and hot rods.
“We are very excited to have closed this important acquisition,
and on behalf of FOX we sincerely welcome the Ridetech team to the
FOX family,” said Mike Dennison, FOX’s Powered Vehicles Group
President. “At FOX we focus on improving vehicle performance while
delivering outstanding customer service, and this strategic,
accretive acquisition aligns with that mission while giving FOX an
opportunity to enter the the exciting street performance
market.”
FOX acquired substantially all of the assets of Ridetech for
approximately $14 million. The transaction was financed through a
combination of cash on hand and newly issued unregistered shares of
common stock of FOX. For 2019 FOX expects Ridetech to contribute
sales of $6 million to $8 million after elimination of
inter-company sales.
About Fox Factory Holding Corp. (NASDAQ:
FOXF)Fox Factory Holding Corp. designs and manufactures
performance-defining products primarily for bicycles, on-road and
off-road vehicles and trucks, side-by-side vehicles, all-terrain
vehicles, snowmobiles, specialty vehicles and applications, and
motorcycles. The Company is a direct supplier to leading power
vehicle original equipment manufacturers ("OEMs"). Additionally,
the Company supplies top bicycle OEMs and their contract
manufacturers and provides aftermarket products to retailers and
distributors.
FOX is a registered trademark of Fox Factory, Inc. NASDAQ Global
Select Market is a registered trademark of The NASDAQ OMX Group,
Inc. All rights reserved.
Cautionary Note Regarding Forward-Looking
Statements
Certain statements in this press release including earnings
guidance may be deemed to be forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended
and Section 21E of the Securities Exchange Act of 1934, as amended.
The Company intends that all such statements be subject to the
“safe-harbor” provisions contained in those sections.
Forward-looking statements generally relate to future events or the
Company’s future financial or operating performance. In some cases,
you can identify forward-looking statements because they contain
words such as “may,” “might,” “will,” “would,” “should,” “expect,”
“plan,” “anticipate,” “could,” “intend,” “target,” “project,”
“contemplate,” “believe,” “estimate,” “predict,” “likely,”
“potential” or “continue” or other similar terms or expressions and
such forward-looking statements include, but are not limited to,
statements about the Company’s continued growing demand for its
products; the Company’s execution on its strategy to improve
operating efficiencies; the Company’s optimism about its operating
results and future growth prospects; the Company’s expected future
sales and future non-GAAP adjusted earnings per diluted share; and
any other statements in this press release that are not of a
historical nature. Many important factors may cause the Company’s
actual results, events or circumstances to differ materially from
those discussed in any such forward-looking statements, including
but not limited to: the Company’s ability to complete any
acquisition and/or incorporate any acquired assets into its
business; the Company’s ability to improve operating and supply
chain efficiencies; the Company’s ability to enforce its
intellectual property rights; the Company’s future financial
performance, including its sales, cost of sales, gross profit or
gross margin, operating expenses, ability to generate positive cash
flow and ability to maintain profitability; the Company’s ability
to adapt its business model to mitigate the impact of certain
changes in tax laws including those enacted in the U.S. in December
2017; changes in tariffs, quotas, trade barriers and other similar
restrictions on sales; changes in the relative proportion of profit
earned in the numerous jurisdictions in which the Company does
business and in tax legislation, case law and other authoritative
guidance in those jurisdictions; factors which impact the
calculation of the weighted average number of diluted shares of
common stock outstanding, including the market price of the
Company’s common stock, grants of equity-based awards and the
vesting schedules of equity-based awards; the Company’s ability to
develop new and innovative products in its current end-markets and
to leverage its technologies and brand to expand into new
categories and end-markets; the Company’s ability to increase its
aftermarket penetration; the Company’s exposure to exchange rate
fluctuations; the loss of key customers; the outcome of pending
litigation; the possibility that the Company could experience a
disruption in connection with the transition of the majority of the
Company’s mountain bike suspension component manufacturing
operations to Taiwan or unexpected difficulties in such operations;
the possibility that the Company may not be able to accelerate its
international growth; the Company’s ability to maintain its premium
brand image and high-performance products; the Company’s ability to
maintain relationships with the professional athletes and race
teams that it sponsors; the possibility that the Company may not be
able to selectively add additional dealers and distributors in
certain geographic markets; the overall growth of the markets in
which the Company competes; the Company’s expectations regarding
consumer preferences and its ability to respond to changes in
consumer preferences; changes in demand for high-end suspension and
ride dynamics products; the Company’s loss of key personnel,
management and skilled engineers; the Company’s ability to
successfully identify, evaluate and manage potential acquisitions
and to benefit from such acquisitions; future economic or market
conditions; and the other risks and uncertainties described in
“Risk Factors” contained in its Annual Report on Form 10-K or
Quarterly Reports on Form 10-Q or otherwise described in the
Company’s other filings with the Securities and Exchange
Commission. New risks and uncertainties emerge from time to time
and it is not possible for the Company to predict all risks and
uncertainties that could have an impact on the forward-looking
statements contained in this press release. In light of the
significant uncertainties inherent in the forward-looking
information included herein, the inclusion of such information
should not be regarded as a representation by the Company or any
other person that the Company’s expectations, objectives or plans
will be achieved in the timeframe anticipated or at all. Investors
are cautioned not to place undue reliance on the Company’s
forward-looking statements and the Company undertakes no obligation
to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
CONTACT:
ICRKatie Turner646-277-1228Katie.Turner@icrinc.com
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