Fox Buys Marzocchi... well some of it
Big news in the mountainbike world.
So big news in the world of MTB suspension. There have been rumours and rumblings for some time now as to the future of Marzocchi (the legendary Italian suspension specialists). Well the news is now in that Fox (Suspension) have "acquired certain specified assets of Marzocchi's mountain bike product lines". So to the man in the street Fox now own Marzocchi (bits of it), but to what extent we are not too sure.
So what will happen next? Do Fox keep Marzocchi as it is, producing top of the range suspension products? Do they make Marzocchi more of a medium/low range brand (Fox already hit the top end of the market with their own products)? Or do they slowly run Marzocchi into the ground (one less competitor in an already competitive market)? And what of the international distributors, what will happen to them? And sponsored riders? We guess we'll just have to wait and see.
SCOTTS VALLEY, Calif., Oct. 19, 2015 (GLOBE NEWSWIRE)
Fox Factory Holding Corp. (NASDAQ:FOXF) ("FOX") today announced, that through certain of its subsidiaries, it has entered into a definitive agreement to acquire certain specified assets of Marzocchi's mountain bike product lines. The Marzocchi business designs and manufactures motor bike and mountain bike suspension products. FOX expects the transaction to close in Q4 2015 and it is subject to customary closing conditions and is not expected to have a material impact on its anticipated financial results in either fiscal 2015 or 2016.
"We are excited to announce the agreement to acquire certain assets of the Marzocchi mountain bike product lines, which we believe is a significant opportunity for FOX to further expand the penetration of our bike suspension products across more price points," stated Larry L. Enterline, FOX's Chief Executive Officer. "The Marzocchi team has a long history of performance suspension experience and we believe that this highly complementary transaction will allow for the increased growth of the Marzocchi brand worldwide. We expect this transaction will bring together and strengthen two highly complementary product lines and allow for FOX to leverage its marketing, engineering, distribution, and supply chain resources to drive increased top-line growth and profitability."
FOX expects to report fiscal third quarter 2015 earnings results in early November and plans to provide additional financial and transactional details at that time.