Lifestyle label Fox Racing sold to Vista Outdoors

Fox Racing, the clothing label that sells into the cycle, motorbike and broader sports lifestyle markets, will be sold to Vista Outdoors.

Not to be confused with the much larger suspension label Fox Factory (sometimes represented by a tail, rather than a head icon), the clothing firm departs the Altamont Capital Partners portfolio and settles within the Vista bike portfolio alongside the likes of Bell, Giro, Blackburn and QuietKat.

Confirmed in the handover notes, Fox Racing CEO Jeffrey McGuane will remain in the role, as will the remainder of the leadership team. The transaction is likely to close in the second quarter of 2023.

The buyout came in at $540 million, though is not capped here. A further $50 million could be payable depending on the brand’s near-term financial performance.

Fox Racing’s full-year net sales and adjusted EBITDA are forecast to sit at around $350 million and $55 million, respectively for 2022.

“Altamont has been proud to partner with the Fox Racing team to build upon the legacy and leadership of the brand,” said Altamont Capital Partners Co-Founder and Managing Director Keoni Schwartz. “Altamont believes in making purposeful, long-term investments that allow us to build strong businesses through collaborative work with our partners. We are grateful for the leadership of CEO Jeff McGuane and all the efforts of the entire Fox Racing family. We are proud of what we accomplished together over the course of our partnership.”

Kabir Mundkur, a Principal at Altamont, added, “Fox Racing has long been recognized as an iconic outdoor brand. We saw an opportunity to support continued innovation, invest in strategic distribution and enhance brand engagement. We are confident that Fox Racing is well positioned for continued success in this next chapter of growth.”

“Our partnership with Altamont has been crucial in strengthening our brand, driving growth, and building on a successful legacy that dates back to 1974,” said Fox Racing CEO Jeff McGuane. “Altamont has been a great partner supporting our business and our employees and has put us in a position for continued success going forward. We’re grateful to Altamont for their support and excited for the future as part of the Vista Outdoor family.”

The transaction will be immediately accretive to Vista Outdoor’s earnings, barring the costs and inventory setup.

Robert W. Baird & Co. acted as financial advisor and Ropes & Gray provided legal advice to Fox Racing and Altamont Capital Partners on the transaction. Morgan Stanley & Co. LLC served as financial advisor and Reed Smith LLP served as legal advisor to Vista Outdoor in connection with the transaction.

Fox Racing Director of Retail Experience and author of Leading Out Retail, Donny Perry appeared on CI.N’s Podcast earlier this year, sharing his multi-decade experience in bike shop management.