Fox Head reportedly for sale for 200 million dollars

By

Olivier Guyot

Published
Oct 3, 2014

Among the leading players in action sports created at the end of the 20th century, Fox Head is one of the last privately-owned companies. The brand, specialised in motocross and mountain biking but also in BMXing and wakeboarding, was founded in 1974 by Geoff Fox. The brand has remained a family-run company.

A situation that may change in the coming months. According to The Deal Pipeline, a magazine specialised in mergers and acquisitions, Fox Head has hired the Robert W. Baird & Co investment firm to search out potential buyers.

The magazine points out that Fox Head has sales & revenue of nearly 190 million euros but is having difficulties achieving a break-even point.

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For all that, it gives a list of groups and investment funds which could be attracted by this dossier estimated at 200 million dollars (157 million euros).

Although the brand may not have enough of an international reputation for VF (Vans) or Kering (Volcom), players like Marlin Equity Partners (Neff), Altamont (Dakine) and even Iconix Brand (Umbro, Starter) or Sequential Brands (DVS skateboarding and Heelys) could be interested in acquiring this holding. Especially since the brand is making an effort to have an international favour.

Two years ago, Fox Head set up its European headquarters in Barcelona. In addition to this localisation in Catalonia, the brand changed its approach to the European market. It is gradually putting an emphasis on its direct influence in Europe by directly taking on the markets.

After France, Spain and the United Kingdom, Fox Head is branching out into Germany for spring 2015. The brand is showing strong ambitions for double digit growth in the next seasons, especially in the cycling division. In a market that is tensing up, it plans to take it shares.

The company may focus on its product developments with the introduction of a winter collection for cycling. In the same category, Fox also offers a range of products for women, with three ensembles and a helmet for spring 2015.

In France, the brand claims a presence with 150 cycle specialists, 200 players in the motocross sector and some one hundred independent entities proposing its lifestyle offer. Fox Head counts on strengthening its presence among these partners. The fact of using a subsidiary and leaning more heavily on distributors allows it in particular to coordinate its merchandising actions and to propose POS in the core shops.

Attractive features that the management team, led by Nick Adcock, former Global President of DC Shoes, appointed CEO at the beginning of the year, could use in the future takeover negotiations.