Fox Racing Australia has stated its operations will not be impacted by this month’s sale of its parent company to US outdoor sports and adventure company Vista Outdoors.
“There is no changes or implications to FOX Racing Australia,” Fox Racing Australia general manager Todd Hickling said.
“We are not looking to take on any of the other Vista brands and will continue to drive the success of Fox in (the) moto, MTB and lifestyle space locally.”
Vista Outdoor – the parent company of 39 brands that design, manufacture and market sporting and outdoor products for markets around the globe – announced on 6th July it had “entered into a definitive agreement” to purchase Fox Racing for $540 million.
It said there was potential for an additional $50 million payout, based on Fox Racing’s financial performance.
A statement from Vista said Fox Racing has been a leading voice in the motocross and adventure sector for the past 50 years, “with a dedicated consumer following and talented group of employees”.
It said Fox Racing’s history of producing innovative gear that “enables racers and explorers to reach new heights aligns perfectly with Vista Outdoor’s existing portfolio of leading outdoor brands”.
Sales Growth Expected to Top Covid Surge
“Fox Racing grew net sales by a compound annual growth rate of approximately 20% from calendar year 2019 to 2021 and is expected to grow in excess of that in calendar year 2022,” Vista says.
Vista Outdoors CEO Chris Metz said: “Fox Racing is an ideal fit for our portfolio, with a reputation for high-quality helmets, protective gear and apparel for motocross and mountain biking.
“Over the last four years, we have built a diversified portfolio of iconic outdoor brands.”
He said motocross and mountain biking are growing categories for Vista Outdoor and Fox Racing fits well with other brands within its ranks, including Bell Helmets, Giro, Blackburn, Krash, Copilot and Raskullz.
The addition of Fox Racing would allow Vista to “target multiple consumer demographics across mountain and road biking, skiing/snowboarding, and powersports”.
“We expect that Fox Racing and our legacy teams will find multiple opportunities to leverage core competencies, enhance supply chain efficiency and resiliency, and better serve our customers and consumers to drive future growth.
He said the acquisition would already make Vista one of the world’s largest outdoor recreation companies.
Leadership Team Remains
Fox Racing CEO Jeffrey McGuane is being retained in the position, along with the rest of its leadership team, and he welcomed the purchase.
He said supply chain synergies, an expanded customer base and increased available capital for innovation and growth constituted a “win-win for all involved”.
Vista Outdoor has declared it expects to close the transaction in the second fiscal quarter of the 2023 US financial year (which begins on 1st October 2022), subject to receiving regulatory approvals and other customary closing conditions.
The Minnesota-based organisation announced in May it is separating its outdoor products and sporting products operations. Its sporting brands include Remington Ammunition, Federal Ammunition and Stone Glacier hunting equipment.
Brothers Bob and Geoff Fox launched a small business in 1974 to distribute motocross suspension components. The 1977, they split the operation into Fox Racing – which produces motocross and MTB helmets, protective garments, apparel and bags – and Fox Factory, which manufactures suspension components for motorcycles, automobiles, all-terrain vehicles, snowmobiles, and mountain bikes.