Fox Factory to Acquire Custom Wheel House

Nov 25, 2023

Fox Factory Holding Corp. (NASDAQ: FOXF) announced today that its subsidiary, Fox Factory, Inc., signed a definitive agreement to acquire Custom Wheel House, LLC ("CWH") from Thompson Street Capital Partners and other sellers. The purchase price for the transaction, which is subject to customary adjustments, is based on an enterprise value of $131.6 million and will be financed through a combination of cash on hand and borrowings from the Company's line of credit. The transaction is expected to close late in the first quarter of 2023, subject to customary closing conditions, and to be accretive to the Company's fiscal 2023 financial results.

CWH, based out of Rancho Dominguez, California, designs, markets, and distributes high-performance wheels, performance off-road tires, and accessories. The family of brands includes their premier flagship brand Method Race Wheels, along with Tensor Tire, and GMZ Race Products, which are geared towards the manufacturing and distribution of off-road performance products for automotive, truck, and utility vehicles. This acquisition is complementary to FOX's upfitting and lift kit business and further broadens its product offering in a growing segment of the automotive industry.

"We are excited to announce the acquisition of Custom Wheel House, and believe it presents a substantial vertical integration and collaborative opportunity for FOX. This will further expand our performance-defining aftermarket solutions with the additions of high-performance wheels and performance off-road tires," stated Mike Dennison, FOX's Chief Executive Officer. "When pushing the limits of ride dynamics, expanding the Company's expertise from suspension to wheels and tires is a natural evolution. We welcome the experienced Custom Wheel House leadership team and believe they will play an integral part in the Company's growth going forward."

"As a founder-focused private equity firm, we greatly value the opportunity to partner with and support entrepreneurs like Kevin Fitzgerald and his talented executive team," said Jeff Aiello, Managing Director at Thompson Street Capital Partners. "We are confident that Custom Wheel House, and its market-leading Method Race Wheels brand, will continue to flourish under Fox Factory's ownership."

Compelling Strategic and Financial Transaction Benefits:

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 powered 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.

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