Wednesday, January 9, 2008

Fox Shox Sold!

http://www.bicycleretailer.com/news/newsDetail/815.html


Fox Racing Shox Has New Majority Owner
WATSONVILLE, CA (BRAIN)—Compass Diversified Holdings (CODI) has purchased a majority interest in Fox Racing Shox.CODI's investment in Fox is based on a total enterprise value of $85.0 million, representing approximately 7.5 times Fox's estimated Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) for 2007.“For over thirty years Fox Racing Shox has been devoted to fulfilling the performance needs of our customers. Over the last several years Fox has experienced unprecedented growth, and we now look forward to being partnered with Compass for the next chapter in our company’s history,” said company founder Bob Fox, who will remain chief executive officer.“Being a successful, healthy company, Fox had the luxury of being able to carefully search out and select the best partner for this transition. The financial strength and resources Compass provides will enable Fox to continue our strong growth and leadership in all of our markets. Importantly, the Compass vision provides a transition that will be seamless and virtually invisible to all concerned—including customers, vendors and employees,” he added.Previously the sole owner, Bob Fox will retain significant ownership in Fox. He will share with other senior managers an initial minority ownership of approximately 24 percent. “It’s been a wonderful and exhilarating ride to see the company I started in my friend’s garage grow to sales of over $100 million. I am proud of what we’ve done so far and know Fox will be a stronger company going forward than I alone had the resources to provide for,” he said.Based in Westport, Connecticut, CODI acquires controlling interests in profitable small to middle market businesses in attractive niche industries.“Fox is a strong addition to CODI,” said Joe Massoud, CODI’s chief executive officer. “This company possesses the critical characteristics we look for in all of our businesses, including market leadership and proven management. Bob Fox and the company’s senior management team have driven growth by providing innovative suspension products for over three decades and we look forward to working with them to continue and accelerate this growth.”
[ back ]

No comments: