WESTPORT, Conn., Aug. 31, 2017 /PRNewswire/ -- Compass Diversified
Holdings (NYSE: CODI) ("CODI" or the "Company"), an owner of
leading middle market businesses, announced today that its
subsidiary, Sterno Products, LLC ("Sterno Products"), has acquired
sevenOKs, Inc. ("sevenOKs"), a leading provider of insulated food
carriers for the foodservice and retail markets.
Based in La Porte, Indiana,
sevenOKs is one of North America's
top manufacturers and distributors of premium insulated hot and
cold food carriers and accessories for restaurant delivery, stadium
concessions, catering operations and school nutrition programs. All
sevenOKs products are engineered and assembled in-house through a
zero-defect manufacturing process, allowing for high customer
flexibility with customization options and short lead times. For
the fiscal year ended December 31,
2016, sevenOKs reported net revenue of approximately
$4 million. CODI funded the purchase
price through a draw on its revolving credit facility.
"This marks our second accretive add-on acquisition since
acquiring Sterno Products in 2014," stated Alan Offenberg, CEO of Compass Diversified
Holdings. "As with the 2016 acquisition of Northern International,
adding sevenOKs furthers Sterno Products' expansion into
complementary categories with its extensive foodservice product
line. Looking ahead, CODI will continue seeking opportunities to
acquire and grow leading middle market businesses that generate
strong cash flows and support our ability to provide consistent
distributions to our shareholders."
Don Hinshaw, President and CEO of
Sterno Products, commented, "The acquisition of sevenOKs is a
natural extension of our company's 100-year mission to provide our
customers with quality products that help keep food at ideal
serving temperatures. Adding this premium brand strengthens Sterno
Products' comprehensive portfolio of industry leading products,
while also expanding our presence in the foodservice market."
About Compass Diversified Holdings ("CODI")
CODI owns
and manages a diverse family of established North American middle
market businesses. Each of its current subsidiaries is a leader in
its niche market.
CODI maintains controlling ownership interests in each of its
subsidiaries in order to maximize its ability to impact long term
cash flow generation and value. The Company provides both debt and
equity capital for its subsidiaries, contributing to their
financial and operating flexibility. CODI utilizes the cash flows
generated by its subsidiaries to invest in the long-term growth of
the Company and to make cash distributions to its shareholders.
Our nine majority-owned subsidiaries are engaged in the
following lines of business:
- The design and marketing of purpose-built tactical apparel and
gear serving a wide range of global customers (5.11);
- The manufacture of quick-turn, small-run and production rigid
printed circuit boards (Advanced Circuits);
- The manufacture of engineered magnetic solutions for a wide
range of specialty applications and end-markets (Arnold Magnetic
Technologies);
- Environmental services for a variety of contaminated materials
including soils, dredged material, hazardous waste and drill
cuttings (Clean Earth);
- The design, manufacture and marketing of airguns, archery
products, optics and related accessories (Crosman);
- The design and marketing of wearable baby carriers, strollers
and related products (Ergobaby);
- The design and manufacture of premium home and gun safes
(Liberty Safe);
- The manufacture and marketing of branded, hemp-based food
products (Manitoba Harvest); and
- The manufacture and marketing of portable food warming fuels
and creative ambience solutions for the hospitality and consumer
markets (Sterno Products).
This press release may contain certain forward-looking
statements, including statements with regard to the future
performance of CODI. Words such as "believes," "expects,"
"projects," and "future" or similar expressions, are intended to
identify forward-looking statements. These forward-looking
statements are subject to the inherent uncertainties in predicting
future results and conditions. Certain factors could cause actual
results to differ materially from those projected in these
forward-looking statements, and some of these factors are
enumerated in the risk factor discussion in the Form 10-K filed by
CODI with the SEC for the year ended December 31, 2016 and other filings with the SEC.
Except as required by law, CODI undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
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SOURCE Compass Diversified Holdings