Fox Factory Holding Corp. · NASDAQ:FOXF
Fox Factory — Merger or Acquisition (November 2023)
26 slides from Fox Factory's merger presentation, Nov 28, 2023
Slide 1: Fox Factory Acquires Marucci Sports
Acquires Marucci Sports November 2023
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements in this presentation may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends that all such statements be
Slide 3: Transaction Summary
Transaction Summary • Disruptive brands and cutting-edge technologies with long runway and potential to take dramatic share • Revenue synergies underpinned by strong cross-over demographics • Strategic diversification to gain more control over outcomes (e.g. shift from OEM to AM) • Deep competitive
Slide 4: Creating a Shared Brand Halo of Professionals and Performance Enthusiasts
Creating a Shared Brand Halo of Professionals and Performance Enthusiasts Professional Demand the best product for competitive edge College Athletes / Elite Players Look up to the Professional Athletes and wish to use the same leading innovative products Sport Enthusiasts Wish to only use the best,
Slide 5: Marucci at a Glance
Marucci at a Glance Pro/Enthusiast Brand with Clear Market Leadership in Baseball and Grips Unmatched Usage by the World’s Best Players (unpaid) Creates Brand Halo and Provides Valuable Data to Develop Market Leading Products Proven Ability to Penetrate Adjacent Product Categories Technology-Driven
Slide 6: Pro Forma Financials Accretive to Revenue Growth and Margins
Pro Forma Financials Accretive to Revenue Growth and Margins Key Financial Rationale 19.7% 29.7% 20.6% Pro Forma 19.4% 27.7% 20.3% Pro Forma 2019A – LTM 9/30/23 Revenue CAGR LTM 9/30/23 Adjusted EBITDA % Margin(1) Source: FOXF and CODI Public filings. 1) Excludes synergies. Accretive to growth and m
Slide 7: Multiple Vectors of Continued Growth
Multiple Vectors of Continued Growth 7 Utilize Cutting Edge Innovation and Technology to Disrupt the Game Expand Offering in Bats Across Brands and Customer Segments Capitalize on Significant International Momentum Grow Penetration in SoftballStrategically drive expansion of Hitter’s House Locations
Slide 8: The Best Brands in Baseball & Beyond
The Best Brands in Baseball & Beyond RAPIDLY GROWING LEADERSHIP IN Metal Bat #1 Bat Grip #1 Wood Composite Bat CATX OFFICIAL GRIP OF THE Product Leadership Across All Core Categories 8 #1 & #2 Most Used Wood Bat in Big Leagues
Slide 9: Design Driven Craftsmanship and Commitment to Performance-Based Quality
DESIGN DRIVEN CRAFTMANSHIP AND UNPRECEDENTED COMMITMENT TO PERFORMANCE-BASED QUALITY
Slide 10: We Know Grip
WE KNOW GRIP WOOD-LIKE PERFORMANCE W/ UNMATCHED DURABILITY
Slide 11: We Are Authentic, We Live and Breathe Our Brands
We Are Authentic, We Live and Breathe Our Brands 11 BOTH BRANDS ARE LED BY ENTHUSIASTS WHO DESIGN PRODUCTS FOR THEIR ENTHUSIAST CUSTOMERS Marucci was Created and Continues to Be Led by Passionate Diamond Sports Players
Slide 12: The Best Players Use Marucci, Victus and Lizard Skins
The Best Players Use Marucci, Victus and Lizard Skins Marucci products are manufactured to the highest specification with the most advanced analytics & technology Professional players purchase products at full price – no bat is free – the pros trust Marucci when it counts the most 14 MVP Award Winne
Slide 13: Why Marucci & Victus? Performance Matters
Why Marucci & Victus? – Performance Matters 231 194 136 50 33 21 21 15 6 5 5 3 2 0 50 100 150 200 250 Source: Management Estimates 2023 Post Season Hits
Slide 14: Attention to Detail, Quality and Continuous Product Improvement
Attention to Detail, Quality and Continuous Product Improvement in all Aspects of the Game Expertise & Craftsmanship with Meticulous Attention to Detail Like Fox, All Marucci Products are Player-Tested, Field-Tested and Lab-Tested Before Ever Reaching the Consumer With 20 Years of Experience Leading
Slide 15: New Product Innovation Sets Marucci Up For Long Term Sustainable Growth
New Product Innovation Sets Marucci Up For Long Term Sustainable Growth We Will Never Be Complacent – Marucci is Always Looking for the Next Market DISRUPTOR Across Categories Bringing Success and Differentiated Product to Areas Where Others Have Failed Fielding Gloves Introduced in 2019 Cleats & Tr
Slide 16: Marucci Has Unparalleled Relationships Across the Game
Marucci Has Unparalleled Relationships Across the Game Leading Relationships Across Sales Channels - Similar to Fox where both brand’s OEM and Retail Partners Need Marucci and Fox Products for their Own Success Both and aaa have a Shared Passion for Connecting with Our Consumers through Events and O
Slide 17: Balanced Distribution Catering to All Levels of the Sport
Balanced Distribution Catering to All Levels of the Sport Allowing Marucci to Meet Customers Where They Want to Buy 1) Represents channel breakdown for TTM May 2023A. 2) L.E.K. Research. 14% 8%2% 38% 38% WINNING ACROSS ALL CHANNELS EARLY INNINGS OF EXPANDING PRESENCE IN GAME CHANGERS FOR THE MARUCCI
Slide 18: A Long History of Continued Growth
2004A 2017A 2018A 2019A 2020A 2021A 2022A 2023E Note: 2017 & 2018 inclusive of Marucci & Victus net revenue, not pro forma for Lizard Skins and Baum net revenue. 1) Inclusive of Hitter’s House, Baseball Performance Lab and Other revenue. A Long History of Continued Growth (Net Revenue, $ Millions) F
Slide 19: Huge Runway to Continue Disrupting US Market
Japan and South Korea ~$1.1B U.S. & Canada ~$1.9B ~6% Huge Runway to Continue Disrupting US Market Large Opportunity Internationally Where Marucci has Proven Traction Marucci is well positioned to continue disrupting the large and growing Diamond Sports market MARUCCI IS BEST POSITIONED TO CAPTURE T
Slide 20: Why Marucci
WHY MARUCCI 1 DISRUPTIVE BRAND WITH LEADING MARKET SHARE AND AN EXPANDING PRODUCT OFFERING 5 LARGE AND GROWING MARKET EXPERIENCING POSITIVE TAILWINDS 2 LEADING INNOVATION AND PROPRIETARY SUPPLY UNDERLYING BEST-IN-CLASS PRODUCTS 6 MULTIPLE GROWTH OPPORTUNITIES WITH PROVEN MOMENTUM 3 OMNI-CHANNEL DIST
Slide 21: Appendix
APPENDIX
Slide 22: Professional Market Share and Grassroots-to-Pro Halo
Professional ~56% Market Share(1) of Big League Players Grassroots to Pro: years of targeting the best players at all levels has created a deeply-entrenched halo 22 P ro H al o College Exclusive partnership with LSU Baseball (2023 CWS National Champions) and other top D-1 programs Unparalleled Innov
Slide 23: Leveraging the BPL to Keep Marucci's Products Ahead of the Curve
Leveraging the BPL to Keep Marucci’s Products and Processes Ahead of the Curve for the Next 20 Years Innovation in action: baseball performance lab’s data-driven approachMarucci Balance Point Index (BPI)TM Baseball Performance Lab (“BPL”) Contains Technology That Allows for Independent Measurements
Slide 24: Best in class management team in place to drive growth
Best in class management team in place to drive growth 1) Includes tenure at Victus. TEAM TITLE YEARS AT MARUCCI PRIOR EXPERIENCE Kurt Ainsworth Founder & CEO 19 Michael Uffman CFO 10 Mark Barry EVP of Global Sales 9 Jared Smith GM,Co-Founder of Victus 11(1) Jim Lunney COO 1
Slide 25: Marucci financial summary
25 Marucci financial summary
Slide 26: Adjusted EBITDA Reconciliation
26 Adjusted EBITDA Reconciliation LTM ($ in Millions) 2019 2020 2021 2022 As of 9/30/2023 Net Income (Loss) $5.5 ($18.3) $10.2 $11.5 $19.3 Management Fees and Board Compensation 1 - 1.3 1.6 0.6 0.6 Depreciation & Amortization 2.0 11.5 8.6 12.6 12.9 Interest Expense, Net 0.6 1.9 3.1 7.0 9.3 Income Ta
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