Compass Diversified Holdings to Acquire Baseball Equipment Company Marucci Sports
March 09 2020 - 9:00AM
Compass Diversified Holdings (NYSE: CODI), an owner of leading
middle market businesses, today announced that it has entered into
a definitive agreement to acquire Baton Rouge, Louisiana-based
Marucci Sports, LLC (“Marucci” or the “Company”), the fastest
growing baseball and softball brand, for a purchase price of $200
million (excluding working capital and certain other adjustments
upon closing).
In 2009, Marucci Sports was founded by two former professional
baseball players and an assistant White House Press Secretary. Over
the past decade, hundreds of Big League players have chosen Marucci
products, making Marucci one of the most popular bats in baseball.
While continuing to increase market share in wood bats, Marucci has
built on its devoted brand following by expanding the product
portfolio to include a full suite of baseball equipment and
apparel. The Company achieved approximately $14 - $15 million of
adjusted EBITDA for the trailing twelve month period ending
December 31, 2019.
“We are pleased to add Marucci Sports to our portfolio of niche
market leading brands,” said Elias Sabo, CEO of Compass Group
Diversified Holdings LLC. “With an unwavering commitment to quality
craftsmanship and focus on addressing players’ evolving needs,
Marucci has firmly established itself as a leader in baseball
equipment, and we are confident that together we will further
expand Marucci’s best-in-class product portfolio, penetrate new
markets, and increase the brand’s presence internationally.”
Mr. Sabo continued: “Leveraging CODI’s deep sector expertise and
proven track record of building businesses for the long term, as
well as Marucci’s loyal brand following, we believe the Company is
poised for continued success in the sports equipment space. As
their roster of impressive customers continues to grow, we are
delighted to partner with Marucci’s talented team to build on the
success they have achieved since the Company’s founding and further
accelerate their growth and expansion in the years to come.”
“When we launched Marucci Sports, our goal was to offer all
players, regardless of age or level, big-league quality products
that they wanted and needed to be successful,” said Kurt Ainsworth,
Co-Founder and Chief Executive Officer of Marucci. “This
partnership with CODI represents the beginning of a long-term
relationship that recognizes the tremendous efforts and hard work
of the Marucci team and demonstrates the high growth potential of
our impressive suite of products. We look forward to working with
Elias and the CODI team as we leverage their substantial expertise
in the branded consumer products space and permanent capital base
to achieve our shared objectives.”
Marucci Bat Company, which was launched in a backyard shed in
2004 with the goal of becoming the Number One Bat in the Big
Leagues, was Marucci Sports’ first acquisition. Today, Marucci
Sports has 230 employees across its brands. In 2017, Marucci
acquired Victus, a King of Prussia, Pennsylvania-based baseball
equipment manufacturer and distributor, widely recognized for their
“edgy designs” and “big attitude.” With vertically integrated wood
bat manufacturing capabilities, an extensive global supplier group,
and client base that includes Home Run Derby participants, MVPs and
World Series winners, Marucci and Victus have become two of the
leading brands in the market.
Following the close of the transaction, Marucci will continue to
be led by Mr. Ainsworth and its current leadership team. The
Company will remain headquartered in Baton Rouge.
Under the terms of the agreement, CODI will acquire a
substantial tax asset associated with the structuring of the
transaction. The acquisition is expected to close within the next
45 days, subject to customary closing conditions. Additional
information on the acquisition will be available in CODI's current
report on Form 8-K that will be filed with the Securities and
Exchange Commission (“SEC”).
Jefferies LLC served as financial advisor to Marucci.
Marucci Sports
Founded in 2009, Marucci Sports is a leading manufacturer and
distributor of baseball and softball equipment under the Marucci
and Victus brands, headquartered in Baton Rouge, Louisiana.
Marucci’s product portfolio includes wood and metal bats, apparel
and accessories, batting and fielding gloves, and bags and
protective gear. Today, Marucci and Victus are the top two
most-used bats among Big League players.
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 eight majority-owned subsidiaries are engaged in the
following lines of business:
- The design and marketing of purpose-built technical 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);
- The design and marketing of wearable baby carriers, strollers
and related products (Ergobaby);
- The design and manufacture of custom molded protective foam
solutions and OE components (Foam Fabricators);
- The design and manufacture of premium home and gun safes
(Liberty Safe);
- The manufacture and marketing of portable food warming fuels
for the hospitality and consumer markets, flameless candles and
house and garden lighting for the home decor market, and wickless
candle products used for home decor and fragrance systems
(Sterno); and
- The design, manufacture and marketing of airguns, archery
products, optics and related accessories (Velocity
Outdoor).
Contacts
Investor
Relations: The IGB
Group Leon Berman212-477-8438lberman@igbir.com
Media:Joele Frank, Wilkinson Brimmer KatcherJon
Keehner / Julie Oakes / Kate Thompson212-355-4449
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