Fox to aquire Marzocchi

ajay

^Once punched Jeff Kennett. Don't pick an e-fight
From pinkbike:

Fox Factory Holding Corp. (NASDAQ: FOXF) (“FOX”). today announced, that through certain of its subsidiaries, it has entered into a definitive agreement to acquire certain specified assets of Marzocchi's mountain bike product lines. The Marzocchi business designs and manufactures motor bike and mountain bike suspension products. FOX expects the transaction to close in Q4 2015 and it is subject to customary closing conditions and is not expected to have a material impact on its anticipated financial results in either fiscal 2015 or 2016.

"We are excited to announce the agreement to acquire certain assets of the Marzocchi mountain bike product lines, which we believe is a significant opportunity for FOX to further expand the penetration of our bike suspension products across more price points," stated Larry L. Enterline, FOX's Chief Executive Officer. "The Marzocchi team has a long history of performance suspension experience and we believe that this highly complementary transaction will allow for the increased growth of the Marzocchi brand worldwide. We expect this transaction will bring together and strengthen two highly complementary product lines and allow for FOX to leverage its marketing, engineering, distribution, and supply chain resources to drive increased top-line growth and profitability."

FOX expects to report fiscal third quarter 2015 earnings results in early November and plans to provide additional financial and transactional details at that time.
 

DJR

Likes Dirt
I'm sure when the first Marzocchi fork is released under the ownership of Fox it'll probably cost more than they paid for the entire company.... :eek:hwell:

At least they found a buyer and the name will live on, the QC/support might get a little better to boot
 

Calvin27

Eats Squid
Probably a way for fox to get into the lower spec oem market without killing it's brand.

Too many lost sales to the likes of rock shox and suntour. I men they pretty much have nothing under $500 mark - and that's on sale...
 

Dozer

Heavy machinery.
Staff member
Thats great news, the more options we have for buying quality gear, the better the competition will be to produce great products and keep the pricing competitive. Well played Fox.
 

ajay

^Once punched Jeff Kennett. Don't pick an e-fight
Likely they've just aquired the patents and IP to stop another high end manufacturer from taking a slice from their market. Marzocchi will end up as the cheap oem arm of fox, while they continue to sell their current range as the premium product (despite how much they suck :p) :behindsofa:
 

schred

Likes Bikes and Dirt
Thats great news, the more options we have for buying quality gear, the better the competition will be to produce great products and keep the pricing competitive. Well played Fox.
Apart from the 'well played fox' comment, presume this is this more uber-sarcasm?
 

dunndog

Eats Squid
Anyone wanna swap a set of 380's in excellent nic, frshly serviced new seals and new warranty replaced stanchions for a set of black 2015 Boxxer teams?
 

Dozer

Heavy machinery.
Staff member
Apart from the 'well played fox' comment, presume this is this more uber-sarcasm?
No way, it can't be a bad thing. If Fox choose to produce lower end stuff that I have zero interest in buying then so be it, no big deal to me but if they continue to produce their own gear that is a high quality product that works regardless of what the hashtags and trends are dictating and being worshiped by people who have never used the products then that's great. They'll want to make suspension that rivals that of it's competitors and again, having a choice is great for us.
Over the last few years, there's been a trend develop that Fox is makign junk that doesn't work. The band wagon is in full flight and tons of people who have owned one bike in their lives (a fucking 29er no doubt) bullshit on about how much Rockshox shits on Fox, 'Zocchi is shit blah blah blah. I respect the opinion of people who've ridden bikes more than Freddy who got a good deal on this year's market trend by the local shop who has to keep their numbers up to keep the sticker on the window saying they sell a certain brand. I've used so many different parts, I've owned over twenty mountain bikes over the twenty years I've been riding and that is across all disciplines. The development of most manufacturers comes and goes in waves and will see one range excel more than others for a duration then the next best thing will come along and....................................Fox will be cool again, the cool kids will be claiming Fox is the king, Rockshox will be old technology etc etc blah blah blah.
 

dunndog

Eats Squid
No way, it can't be a bad thing. If Fox choose to produce lower end stuff that I have zero interest in buying then so be it, no big deal to me but if they continue to produce their own gear that is a high quality product that works regardless of what the hashtags and trends are dictating and being worshiped by people who have never used the products then that's great. They'll want to make suspension that rivals that of it's competitors and again, having a choice is great for us.
Over the last few years, there's been a trend develop that Fox is makign junk that doesn't work. The band wagon is in full flight and tons of people who have owned one bike in their lives (a fucking 29er no doubt) bullshit on about how much Rockshox shits on Fox, 'Zocchi is shit blah blah blah. I respect the opinion of people who've ridden bikes more than Freddy who got a good deal on this year's market trend by the local shop who has to keep their numbers up to keep the sticker on the window saying they sell a certain brand. I've used so many different parts, I've owned over twenty mountain bikes over the twenty years I've been riding and that is across all disciplines. The development of most manufacturers comes and goes in waves and will see one range excel more than others for a duration then the next best thing will come along and....................................Fox will be cool again, the cool kids will be claiming Fox is the king, Rockshox will be old technology etc etc blah blah blah.
Does that mean you don"t have any boxxers for me? Gotta be black..
 

pharmaboy

Eats Squid
Good news, especially if you have zoccys.

On fox - I've gone over to rockshox, in the main because servicing is easier, as is the guides for servicing and obtaining seals etc.

Still, fox rears are still the best for XC bikes
 

schred

Likes Bikes and Dirt
No way, it can't be a bad thing. If Fox choose to produce lower end stuff that I have zero interest in buying then so be it, no big deal to me but if they continue to produce their own gear that is a high quality product that works regardless of what the hashtags and trends are dictating and being worshiped by people who have never used the products then that's great. They'll want to make suspension that rivals that of it's competitors and again, having a choice is great for us.
Over the last few years, there's been a trend develop that Fox is makign junk that doesn't work. The band wagon is in full flight and tons of people who have owned one bike in their lives (a fucking 29er no doubt) bullshit on about how much Rockshox shits on Fox, 'Zocchi is shit blah blah blah. I respect the opinion of people who've ridden bikes more than Freddy who got a good deal on this year's market trend by the local shop who has to keep their numbers up to keep the sticker on the window saying they sell a certain brand. I've used so many different parts, I've owned over twenty mountain bikes over the twenty years I've been riding and that is across all disciplines. The development of most manufacturers comes and goes in waves and will see one range excel more than others for a duration then the next best thing will come along and....................................Fox will be cool again, the cool kids will be claiming Fox is the king, Rockshox will be old technology etc etc blah blah blah.
Hmm, you just assumed Fox is going to want to compete with themselves, which respectfully is nonsensical. May I suggest by purchasing existing competition Fox will broadly:
a) lock out potential new entrants and threats to their market segment of decent suspension, which will in effect decrease competitive rivalry amongst existing players, let alone new ones. And,
b) use said purchase of competition as a stepping stone to reposition and support its existing product & brand (& therefore primary product) which for Fox I'd suggest means retaining all the things that make their brand premium, including the price.

Not seeing the upside.
 

Dozer

Heavy machinery.
Staff member
Hmm, you just assumed Fox is going to want to compete with themselves, which respectfully is nonsensical. May I suggest by purchasing existing competition Fox will broadly:
a) lock out potential new entrants and threats to their market segment of decent suspension, which will in effect decrease competitive rivalry amongst existing players, let alone new ones. And,
b) use said purchase of competition as a stepping stone to reposition and support its existing product & brand (& therefore primary product) which for Fox I'd suggest means retaining all the things that make their brand premium, including the price.

Not seeing the upside.
Sorry, I didn't mean to come across as having a dig at you, I was just airing the laundry. ;)

You're spot on with the A and B, it would be a business choice far more than a "let's do it for the people" kind of thing. Surely the purchase would be bloody cheap too making it and even easier choice for them to do so. Who knows, they may even re brand it and bury the Marzocchi name in mountain biking.
 

scblack

Leucocholic
Hmm, you just assumed Fox is going to want to compete with themselves, which respectfully is nonsensical. May I suggest by purchasing existing competition Fox will broadly:
a) lock out potential new entrants and threats to their market segment of decent suspension, which will in effect decrease competitive rivalry amongst existing players, let alone new ones. And,
b) use said purchase of competition as a stepping stone to reposition and support its existing product & brand (& therefore primary product) which for Fox I'd suggest means retaining all the things that make their brand premium, including the price.

Not seeing the upside.
This transaction gives Fox an established name to compete at price points they do not presently have. It will NOT be competing with their present product range.

Fox sell their product at premium pricing. They do not want to cheapen the Fox name by releasing cheap product under the Fox name. So, what companies do is establish (or buy) a brand at a lower price point, so that it does not cannibalise their current sales. Marzocchi product will not be competing directly against Fox product.

Its a great move for Fox. They would not have bought much more than the brand name and patents maybe (no-one knows for sure). And seeing Marzocchi did not have much interest in anyone buying the MTB/moto business it appears Fox would have gotten a cheap price too.

Lots of upside.
 

schred

Likes Bikes and Dirt
Sorry, I didn't mean to come across as having a dig at you, I was just airing the laundry. ;)

You're spot on with the A and B, it would be a business choice far more than a "let's do it for the people" kind of thing. Surely the purchase would be bloody cheap too making it and even easier choice for them to do so. Who knows, they may even re brand it and bury the Marzocchi name in mountain biking.
Yeah man no probs at all, bring back the BAM!
 

Calvin27

Eats Squid
Fox is going to use this to swamp the oem market.

If you are giant, and have a gazillion boulders to sell, you'd slap an entry level marzocchi fork on it and instantly win a hugh chunk of sales from the competitors using suntour. Fox has the business skills to negotiate at this scale, and the marketing experience to 'prestige' their product. Aside from suntour, there is nothing else in oem market bar some overpriced bikes with xc28/30s. They could pretty much release one single 100mm fork and call it a day.

Unfortunately this is not good for the high end marzocchi, I really don't see how they can still be sold alongside each other.

I, for one was secretly hoping shimano would pick these guys up.
 
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