Shirts and ties might be a stretch. Maybe to start with, the people who answer the phone can limit the amount of pot they smoke during their shift.Dam that compnay is like strictly Corporate America dude. Hopefully guys at Fox won't be working in shirt/ties.
Heh....Maybe the stanchion coating will last longer now ;-)
http://codi.client.shareholder.com/ourcompanies.cfm?pagesect=sdc
They acquired the company, that is a little more than just financial backing only.It's financial backing only, as a major share holder. Bob Fox remains CEO and a majority share holder.
Their products are the most expensive because they are (arguably) the best out there. There are rear shocks that are more expensive than Fox. Besides, its not like they are leaps and bounds more expensive than their competitors. If you want a high performance, premium product, you have to be willing to pay a premium price. End of story. I don't foresee Fox moving production overseas anytime soon, if ever. There are still companies and consumers who take pride in manufacturing/purchasing American made products.fox can make its products in usa. THey are going to have to move to asia because their products are already the most expensiveon the market.
Nope. They purchased "a majority interest". They did not acquire the company completely according to the Fox Press Release.They acquired the company, that is a little more than just financial backing only.
The Compass Co. is using word "acquired" not me..Nope. They purchased "a majority interest". They did not acquire the company completely. Not according to the Fox Press Release.
"Bob Fox will retain a significant ownership in FOX - an ownership now shared with senior managers"
Watsonville, CA, January 7 - Fox Factory, Inc. (D/B/A FOX Racing Shox) announced today that on January 4, 2008 it consummated a
transaction in which Compass Diversified Holdings (“CODI” purchased a majority interest in FOX.
Commenting on the transaction, company founder Bob Fox, who will remain Chief Executive Officer, said “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.
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.”
Bob Fox will retain significant ownership in FOX - an ownership now shared with other senior managers. “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 stated.
Joe Massoud, CODI’s Chief Executive Officer, commented “FOX is a strong addition to CODI. 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.”
On a personal note, Bob Fox added: “I particularly look forward to the freedom this will provide me to again devote much of my time
and energy doing the things – design, engineering, and innovation – that I love the most. A rich backlog of exciting, innovative concepts
have been building up over the last few years, and I can hardly wait to start working on them with our engineering team.”
Since 1974 FOX Racing Shox has designed and manufactured the finest suspension products for Motorcycles, Mountain Bikes, ATV’s,
Snowmobiles and Off-Road racing vehicles. World Headquarters are in Santa Cruz County, CA with its Off-Road Division in Santee, CA.
FOX Racing Shox distributes its products in more than 40 countries.
You really believe the spin Fox's PR team is putting on it?According to Fox's PR, they have been shopping for some backing for awhile and are quite stable financially. My guess is that it's time for an expansion.
Nor particularly, but I deal with them enough for a variety of things to know they aren't exactly in dire straits. The purse strings haven't been pulled tight.You really believe the spin Fox's PR team is putting on it?
Compass is a public co. The truth will come out in the wash..The SEC filings will say it all.
If it is for expansion good for them..
According the public release it sounds like 76/24 with Compass owning majority..Compass's website offers a different take:
-----
A significant financial interest is clearly not a "majority stake." However, it does seem like Compass' experience with specialized tech manufacturing businesses could be very good for Fox in the long run.
According to Compass' own press release, they acquired 76%, with 24% remaining with bob Fox and his senior management.A significant financial interest is clearly not a "majority stake." However, it does seem like Compass' experience with specialized tech manufacturing businesses could be very good for Fox in the long run.
Exactly.they have stockholders to answer too, so if there wasn't an upside to this ($$$$) they wouldn't have done it.
...excellent question to ask!The real question is, who will Fox acquire in their own quest for expansion and vertical integration?
Unless its to expand into frames?Don't forget that they make products outside of the bicycle industry. I would guess any expansion would take place in the powersport industry.
I've italisized what I think is important as a summary.WESTPORT, Conn., Jan 07, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- Compass Diversified Holdings (Nasdaq: CODI), Compass Group Diversified Holdings LLC and its subsidiaries (collectively, "CODI") announced today that on January 4, 2008, CODI simultaneously entered into a definitive agreement to acquire and consummated the acquisition of Fox Factory, Inc. ("Fox").
Founded in 1974 and headquartered in Watsonville, California, Fox is a designer, manufacturer and marketer of high end suspension products for mountain bikes, all terrain vehicles, snowmobiles and other off-road vehicles. Fox both acts as a tier one supplier to leading action sport original equipment manufacturers and provides aftermarket products to retailers and distributors. Fox's products are recognized as the industry's performance leaders by retailers and end-users alike.
Under the terms of the transaction, CODI's acquisition of 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, before taking into account the positive cash flow impact of the tax asset step-up pursuant to which CODI will be acquiring Fox. Fox management will invest in the transaction alongside CODI resulting in an initial minority ownership of approximately 24%.
Regarding the acquisition, I. Joseph Massoud, CODI's CEO, said, "Fox is a strong addition to our current group of subsidiaries. This company possesses the critical characteristics we look for in all of our businesses, including market leadership in a niche industry, strong cash flow and proven management. The Fox brand name is highly recognized and well respected globally in its industry, and Fox's products reflect the company's culture of continual design innovation and superior performance. Robert Fox and the company's senior management team, who will continue to manage the business under our ownership, 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."
Upon closing, this acquisition will be accretive to our shareholders and increase our cash flow available for distribution. Our ability to consummate this transaction was facilitated to a great extent by our financing structure, under which we will fund this acquisition through excess cash on hand and our newly expanded credit facility at the CODI level," concluded Mr. Massoud.
Additional information on the acquisition will be available on the Company's current report on Form 8-K that will be filed with the Securities and Exchange Commission on or before January 8, 2008.
About Compass Diversified Holdings ("CODI")
CODI was formed to acquire and manage a group of middle market businesses that are headquartered in North America. CODI provides public investors with an opportunity to participate in the ownership and growth of companies which have historically been owned by private equity firms or wealthy individuals or families. CODI's disciplined approach to its target market provides opportunities to methodically purchase attractive businesses at values that are accretive to its shareholders. For sellers of businesses, CODI's unique structure allows CODI to acquire businesses efficiently with no financing contingencies and, following acquisition, to provide its companies with substantial access to growth capital.
Upon acquisition, CODI works with the executive teams of its subsidiary companies to identify and capitalize on opportunities to grow those companies' earnings and cash flows. These cash flows support distributions to CODI shareholders, which are intended to be steady and growing over the long term.
I agree. Consider at most you'll have at most $2500 of suspension on your bike, but a Trophy Truck could easily get be anywhere from $40-60k for a set full Fox setup.Don't forget that they make products outside of the bicycle industry. I would guess any expansion would take place in the powersport industry.
or just get back to being more involved with product like when he started?He as an entrepreneur has done an amazing job... probably wnats to do something else
and that's still worth more than any of usI also don't think they are a $100M a year. The report said they were valued at $85M which equalled 7.5x earnings. So they are about $11 M per year..
You lost me on this one. They are over $100M in revenue a year, per Bob in the Fox press release.I also don't think they are a $100M a year. The report said they were valued at $85M which equalled 7.5x earnings. So they are about $11 M per year..