Compass Diversified (CODI) announced it has entered into a definitive agreement to sell its majority owned subsidiary, Wheelhouse Holdings, the parent company of Marucci Sports, to Fox Factory Holding Corp. (FOXF). Under the terms of the agreement, Marucci will be sold to Fox for an enterprise value of $572M, subject to certain working capital and other adjustments. CODI expects to realize a pre-tax gain on the sale of between $225M to $245M. Proceeds from the transaction will be used to pay down outstanding debt and for general corporate purposes. The closing of this transaction is subject to customary terms and conditions, including regulatory approval, and is expected to occur in November 2023.
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