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Fox Factory Holding To Buy SCA Performance Holdings For $328 Mln

Fox Factory Holding Corp. (FOXF) Wednesday said its subsidiary, Fox Factory, Inc., has agreed to buy SCA Performance Holdings Inc. from Southern Rocky Holdings LLC, a portfolio company of Kinderhook Industries.

The $328 million transaction, exclusive of vehicle inventory, will be financed through an expanded and syndicated credit facility led by Bank of America.

The company also agreed to an additional $13 million of contingent, performance-based retention incentives for key SCA management payable over the next two years.

The transaction is expected to close late in the first quarter of fiscal 2020, subject to customary closing conditions, and to be accretive to FOX's fiscal 2020 financial results.

SCA is a leading OEM authorized specialty vehicle manufacturer for light duty trucks and SUVs with headquarters in Trussville, Alabama. They operate under three industry-leading, aftermarket brands: SCA Performance, Rocky Ridge Trucks, and Rocky Mountain Truckworks.

"We are excited to announce the acquisition of SCA, and believe it presents a substantial opportunity for FOX to further expand its performance-defining aftermarket solutions and continue to drive growth in our Powered Vehicles Group," stated Mike Dennison, FOX's Chief Executive Officer. "We look forward to further accelerating our already significant presence in the growing specialty vehicle manufacturing market. We welcome the experienced SCA leadership team and believe they will play an integral part in our Company's growth going forward."

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