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ACQUISITION AND DIVESTITURES
 6 Months Ended
Jun. 28, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
ACQUISITION AND DIVESTITURES ACQUISITION AND DIVESTITURES
HRX ACQUISITION
On March 18, 2026, the Company acquired HRX S.r.l. (“HRX”), an Italian motorsports racewear brand serving drivers and teams across karting and competitive racing categories. The acquisition adds complementary racewear capabilities to Holley’s Safety & Racing portfolio and expands the Company’s presence in European motorsports. The transaction was accounted for as a business combination. Accordingly, the purchase price has been allocated based upon the fair value of the assets acquired and liabilities assumed. Goodwill arising from the acquisition is primarily due to HRX's strong market position. The goodwill and intangibles generated as a result of this acquisition are deductible for income tax purposes. The purchase price was funded from cash on hand and a combination of borrowings under the Company's revolving credit facility.
The initial accounting for this business combination is incomplete for certain assets, liabilities and equity. Accordingly, the purchase price allocation is preliminary and subject to change as the Company completes its valuation analyses and working capital adjustments, including deferred cash payments, contingent consideration, and the valuation of acquired inventory, intangible assets, property, plant and equipment, and certain leases. Any adjustments to the preliminary purchase price allocation will be made as soon as practicable but no later than one year from the acquisition date.
The following table summarizes the preliminary allocation of the purchase price to the fair values of the identifiable assets acquired and liabilities assumed at the acquisition date.
Cash$87 
Accounts receivable1,319 
Inventory2,405 
Property, plant and equipment696 
Right-of-use assets456 
Tradenames1,145 
Customer Relationships1,145 
Developed Technology1,092 
Goodwill2,685 
Total assets acquired11,030 
Accounts payable(2,356)
Deferred income taxes(677)
Other noncurrent liabilities(456)
Long-term debt(2,214)
Total liabilities assumed(5,703)
Net assets acquired$5,327 
DIVESTITURES
On April 17, 2026, the Company entered into an agreement with a buyer, pursuant to which the Company divested the Arizona Desert Shocks brand ("ADS"), including the intellectual property, inventory on hand related to the brand and other certain assets. The Company received total consideration of $3,646, consisting of $1,000 received in the 13-week period ended June 28, 2026, and a promissory note of $2,646. The Company recognized a net loss of $3,342, which was reported as a loss on sale of assets in the condensed consolidated statements of comprehensive (loss) income.
On May 7, 2026, the Company entered into an agreement with a buyer, pursuant to which the Company divested the Speartech brand, including the intellectual property, inventory on hand related to the brand and other certain assets. The Company received total consideration of $1,250 received in the 13-week period ended June 28, 2026. The Company recognized a net loss of $1,486, which was reported as a loss on sale of assets in the condensed consolidated statements of comprehensive (loss) income.
On June 22, 2026, the Company entered into an agreement with a buyer, pursuant to which the Company divested the Drake Classic, Scott Drake, Drake Muscle Cars, Drake Automotive Group, Drake Auto Group, and Brothers Trucks brands (the "Drake Brands"), including the intellectual property, inventory on hand related to the Drake Brands and other certain assets. The Company received total consideration of $7,500 received in the 13-week period ended June 28, 2026. The Company recognized a net loss of $23,486, which was reported as a loss on sale of assets in the condensed consolidated statements of comprehensive (loss) income.
The divestitures are intended to allow the Company to better focus and utilize its resources on its core brands and other opportunities which the Company believes better align with its long-term strategies. The divested brands did not represent a strategic shift that has a major effect on the Company's operations and financial results, and, as such, they were not presented as discontinued operations.