Fox Factory Holding Corp. closed the sale of Marucci Sports on September 25, 2026, for $225 million in enterprise value. That is less than half what the Duluth, Ga., specialty-sports company paid for the Baton Rouge diamond brand in November 2023. The buyer is Squared Up Holdings, LLC, an acquisition vehicle led by Marucci’s existing senior management, including founder and CEO Kurt Ainsworth, with current and former MLB players and other pro athletes in the investor group.
For capital that follows youth sports through the equipment aisle as much as the club aisle, Marucci is a premium bat, glove, helmet, and apparel brand cycling back into founder-aligned private hands. The capital structure of the exit, and what Fox said about why it sold, matter as much as the headline price.
How Marucci Got From $572M to $225M
Marucci’s ownership timeline is short and noisy. Compass Diversified Holdings bought the brand for $200 million in 2020, after Kurt Ainsworth, Joe Lawrence, and Reed Dickens had built Marucci Sports around the original bat company and the Victus sister brand. Fox then paid $572 million in November 2023, per The Advocate.
Under Fox, Marucci generated $192 million of revenue in 2024, according to The Advocate citing Fox’s annual report. Bat Digest opening-day shares cited by The Advocate put Victus at 27.8% and Marucci at 16.7% this year, and Ainsworth told the paper that Marucci and Victus were named official bats of MLB during the Fox ownership period. Product lines span bats, gloves, balls, helmets, apparel, and footwear, plus a dozen Hitter’s Houses from Baton Rouge and New Orleans to Tokyo and London.
Fox launched a strategic-alternatives review for Marucci in February 2026. The September 25 close and Form 8-K Exhibit 99.1 say the process contacted more than 80 potential acquirers and drew 15 indications of interest. Marucci management in the eventual buyer group did not participate in Fox’s evaluation of proposals.
What $200M Cash and a $25M Note Really Buy Fox
The $225 million enterprise value breaks into two pieces Fox disclosed clearly. At closing, Squared Up paid $200 million in cash, subject to certain adjustments, and Fox said it applied that cash in full to reduce credit-facility borrowings. Separately, the buyers delivered a $25 million unsecured subordinated convertible promissory note, inclusive of principal and interest, payable on or before December 31, 2026, and not contingent on performance.
If the note is not satisfied in full by the due date, Fox has the option, not the obligation, to convert the outstanding balance into equity of the parent company of Squared Up Holdings. Fox also disclosed roughly $7.5 million of transaction-related costs paid separately with cash on hand, so those costs did not reduce the closing cash proceeds applied to debt.
On a pro forma basis, Fox said that if the deal had closed on July 3, 2026, net leverage would have been about 2.7 times versus 3.7 times as reported on a credit-agreement basis. Annualized interest expense is reduced by about $16 million, with expected cumulative savings of about $17 million once the note is paid and applied to debt. Fox CEO Michael C. Dennison framed the rationale this way:
“It did not deliver the returns we expected inside Fox, and we determined the optimal path forward was to improve our balance sheet and reallocate capital.”
The Advocate and Fox both say Marucci remains Baton Rouge based with existing brands and leadership in place. What they did not name: the full Squared Up investor list, equity splits, final working-capital adjustments, standalone EBITDA, or any youth-versus-pro revenue mix.
Founder Hands, Athlete Capital, and Equipment Adjacency
A brand that changed hands for $200 million in 2020, $572 million in 2023, and $225 million EV in 2026 carries a clear strategic-fit signal. Fox put Marucci through a formal auction and still exited at a fraction of its own entry price. More than 80 acquirers contacted and 15 IOIs show there was a process. The winner was a management-led vehicle with athlete capital. Fox did not name a PE sponsor or strategic conglomerate as the buyer.
Dennison also left the brand a forward-looking line:
“Marucci is a strong brand with talented people and a loyal following among athletes, and we believe it is well positioned for continued success under new ownership.”
For equipment-adjacent youth sports capital, that mix matters. Travel ball and amateur diamond programs still buy premium bats, gloves, and helmets, and Marucci’s Hitter’s Houses sit next to that channel without inventing a youth revenue percentage Fox never published. The convertible note is the piece bankers should not skip. Fox keeps a path into the buyer’s parent equity if the $25 million is not cashed out by year-end 2026, so the chapter is not fully closed until that note clears or converts.
Takeaways for Investors
The Price Gap Is a Balance-Sheet Story First
Fox paid $572 million in 2023 and exited at $225 million EV in 2026 after a formal auction. Dennison’s returns language and the leverage cut from about 3.7 times to about 2.7 times put the sale inside a debt-and-capital-reallocation frame.
Cash Plus Note Leaves Residual Fox Exposure
The $200 million cash went straight to the credit facility. The $25 million note, payable by December 31, 2026, gives Fox an option into Squared Up’s parent equity if cash never arrives.
Management Plus Athletes Won the Process
Fox contacted more than 80 potential acquirers and took 15 indications of interest. The winning vehicle was led by Ainsworth’s senior team with unnamed current and former MLB players and other pro athletes, while Marucci stays in Baton Rouge.
Youth Sports Angle Is Equipment Adjacency
Marucci sells bats, gloves, helmets, and apparel into amateur and travel ball, with Hitter’s Houses as retail and training adjacency. Fox never published a youth-versus-pro mix, so the read stays on brand, distribution, and ownership continuity.
