Fox Factory confirmed on Monday that Alan Bazaar, CEO of Hollow Brook Wealth Management, will join the board immediately. A second independent director, to be selected by Engine Capital and approved by the board, will follow. This second appointee is expected to bring specialized expertise in manufacturing and margin improvement, areas that have likely been points of contention for the activist investor.
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Fox Factory Overhauls Board in Deal With Activist Engine Capital
Fox Factory Holding Corp. has reached a cooperation agreement with activist investor Engine Capital LP, triggering a strategic board reshuffle and the creation of a new committee focused on operational efficiency. The specialty sports products manufacturer will appoint two new independent directors as part of the deal, aiming to address profitability concerns following private discussions with the hedge fund.
Prioritizing Operational Efficiency
To oversee these strategic shifts, the company is forming a Transformation Committee. Chaired by Sidney Johnson, the group will monitor management’s execution of initiatives designed to bolster the bottom line. The committee will include both new directors and one existing independent board member, signaling a rigorous approach to internal restructuring and performance oversight.The agreement also outlines a long-term transition for current leadership. Director Ted Waitman and Chairman Dudley Mendenhall are slated to retire at the 2026 annual meeting. Under the terms of the cooperation pact, Engine Capital has agreed to customary standstill and voting provisions, effectively pausing potential proxy battles while the new board members take their seats.
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