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Uh Oh. Fox Acquired?

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Old 01-11-08 | 02:51 PM
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Uh Oh. Fox Acquired?

https://news.moneycentral.msn.com/cat...SITIONS&isub=1

Does this mean fox is the new RST?

Is what happened to Schwinn going to happen to Fox?

Credit goes to mtbr.com forums.
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Old 01-11-08 | 03:24 PM
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Word has it that it's financial backing only and that CODI is majority shareholder. Bob Fox will remain as CEO and will "still retain significant ownership." (Fox's words).

I believe that 'word on the street' because of the nature of how Compass Diversified Holdings seems to operate. Should not affect the day-to-day and could mean good things with the extra financial backing. Cannot be compared to Schwinn, which was financially troubled and was eventually acquired by a 'competing' firm inside the industry.

Also cannot be likened to RST which is a subsidiary offshoot of Dah Ken Industries, an already very diversified manufacturer.
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Old 01-11-08 | 03:54 PM
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Originally Posted by dminor
Word has it that it's financial backing only and that CODI is majority shareholder. Bob Fox will remain as CEO and will "still retain significant ownership." (Fox's words).

I believe that 'word on the street' because of the nature of how Compass Diversified Holdings seems to operate. Should not affect the day-to-day and could mean good things with the extra financial backing. Cannot be compared to Schwinn, which was financially troubled and was eventually acquired by a 'competing' firm inside the industry.

Also cannot be likened to RST which is a subsidiary offshoot of Dah Ken Industries, an already very diversified manufacturer.
It looks like the Fox management team has retained 24% of the interest -- likely not 25% because that would give them real veto power. As it is, real control is likely in the hands of CODI. I doubt that this will be solely a financial backing, however, because CODI, based on their website, and private equity firms generally (esp. those that invest in middle market companies) enter into the fray to improve the acquired business so as to "create wealth" for their fund and respective investors. For example, here's a quote from CODI's website: "Upon completion of an acquisition, we immediately begin to work with the acquired company’s management team to identify the most critical and time sensitive needs and opportunities and to address them aggressively."

Of course, if they are a good PE firm, they'll hopefully do their job properly and increase the capital of the company and then likely sell it for a profit and move on. All in all, it doesn't mean that Fox is going down the drain by any means, though if CODI decides that they can make more money for their investors by turning Fox into a crap factory, it could (assuming that they negotiated control over the company in their agreements).

It would be very interesting to see their stockholders agreement and purchase agreement to see what kind of a deal they made, because that's where you'll see what kind of control Fox retained.

Here's a list of other acquisitions by CODI: https://www.compassequity.com/acquisitions/resources/
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Old 01-11-08 | 04:17 PM
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ah.

I was just concerned about getting an 08 rlc. Whether it would be good or not.
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Old 01-11-08 | 04:28 PM
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Originally Posted by Trekbikedude
I was just concerned about getting an 08 rlc. Whether it would be good or not.
I don't think the acquisition by Fox is going to have any impact on the 2008 RLC.
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Old 01-11-08 | 09:51 PM
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A firm like CODI usually does their homework and understands the market they're in. IMHO, the consumer who buys a Fox fork, knows what they are doing. If CODI changed the product so that it did not perform well, the word would get out very fast and in short order, the value of the company would deteriorate. BUT, it would not surprize me to find Fox introducing a new "lower" level fork, that could be marketed to, say, better entry level bikes. But that's just my opinion.
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Old 01-11-08 | 10:02 PM
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Alright, which is better for xc, with some little jumps and drops?
Fox F100 RLC
Magura Laurin
Manitou R7
Rockshox Reba
White Brothers Magic 100.

I'm trying to get a white or red fork because my new frame is a dragon elite and I like things to match.
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Old 01-11-08 | 10:21 PM
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I'm surprised AT&T didn't buy them. they buy everything else
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Old 01-11-08 | 10:30 PM
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I'm having trouble deciding which fork to choose from, but I'm really leaning towards the rlc.
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Old 01-11-08 | 10:39 PM
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I have a 06 reba on my bike .. I wouldn't recommend it for jumping.. it's a lighter XC fork. People have been recommending the xfusion velvet for everything lately, but I have not tried one.
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Old 01-11-08 | 10:39 PM
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If there is going to be any affect, it's going to be possible new offerings from fox. It exactly isn't anything to worry about.
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