Fox Factory To Buy Sport Truck USA's Assets - Quick Facts

(RTTNews) - Fox Factory Holding Corp. (FOXF) has agreed to acquire the assets of Sport Truck USA, a distributor of aftermarket suspension solutions. Sport Truck mainly designs, markets, and distributes high quality lift kit solutions through its brands, BDS Suspension and Zone Offroad Products.

FOX said it would purchase Sport Truck in an asset purchase transaction for about $44 million due at completion. The transaction is being financed with debt and includes a potential earn-out opportunity of up to a maximum of $29.3 million payable over the next 3 years contingent on the achievement of certain performance based financial targets. In 2013, Sport Truck generated nearly $34 million net sales and adjusted EBITDA of some $7 million based upon Sport Truck's unaudited historical financial statements.

The deal is expected to be slightly accretive to FOX's fiscal 2014 earnings excluding transaction costs with the majority of the financial benefit to be realized in full year fiscal 2015. The firm plans to issue updated full year fiscal 2014 earnings guidance upon transaction closure and it to close by March 2014 end.

BDS Suspension offers complete, premium lift kit solutions that are distributed via. knowledgeable four-wheel drive shops with the aim of making the purchasing process as easy as possible for consumers.