WESTPORT, Conn., Jan. 18, 2018 /PRNewswire/ -- Compass Diversified
Holdings (NYSE: CODI) ("CODI" or the "Company"), an owner of
leading middle market businesses, announced that on January 18, 2018, it entered into a definitive
agreement to acquire Foam Fabricators, Inc. ("Foam Fabricators")
from its owner Warren "Budd" Florkiewicz for a purchase price of
$247.5 million (excluding working
capital and certain other adjustments upon closing). The
acquisition is expected to close within the next 45 days, subject
to customary closing conditions. Wells Fargo Securities served as
exclusive financial advisor to Foam Fabricators.
Headquartered in Scottsdale,
AZ, Foam Fabricators is a leading designer and manufacturer
of custom molded protective foam solutions and OEM components made
from expanded polymers such as expanded polystyrene (EPS) and
expanded polypropylene (EPP). Founded in 1957, the company operates
13 state-of-the-art molding and fabricating facilities across
North America. Foam Fabricators
provides products to a variety of end-markets, including appliances
and electronics, pharmaceuticals, health and wellness, automotive,
building products and others. For the trailing twelve months ended
November 30, 2017, the company
reported net revenue of approximately $126
million and EBITDA of approximately $30 million. CODI expects to fund the purchase
price through a draw on its revolving credit facility.
"We are pleased to start the year with an attractive platform
acquisition, growing our family of niche leading businesses to
ten," said Alan Offenberg, CEO of
Compass Diversified Holdings. "This platform acquisition will be
immediately accretive and will enable us to continue growing our
cash flow and provide attractive and stable distributions."
Elias Sabo, CODI's CEO-elect,
stated, "Foam Fabricators possesses the key characteristics that we
look for in all our subsidiaries: a strong management team; a
diversified customer base; strong free cash flow; and attractive
growth prospects. We look forward to working with them to
capitalize on the growing demand in many of their end-markets."
James K. Hughes, President of
Foam Fabricators, will assume the role of Chief Executive Officer
and continue leading the company. Mr. Hughes commented, "We are
excited to partner with Compass Diversified Holdings as we enter
the next phase of Foam Fabricators' growth. CODI provides the
financial stability and experience to allow us to continue to meet
the needs of our customers, employees and stakeholders. We are
eager to leverage CODI's financial resources and proven expertise
in growing middle market companies to build upon our 60-year
history. I would also like to thank Budd
Florkiewicz for his leadership of the company over the last
three decades."
Additional information on the acquisition will be available on
the Company's current report on Form 8-K that will be filed with
the Securities and Exchange Commission.
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