WESTPORT, Conn., Sept. 4, 2018 /PRNewswire/ -- Compass
Diversified Holdings (NYSE: CODI) ("CODI" or the "Company"), an
owner of leading middle market businesses, announced today that its
subsidiary, Velocity Outdoor Inc. ("Velocity Outdoor"), has
acquired Ravin Crossbows, LLC ("Ravin") for a purchase price of
$94 million (excluding working
capital, a potential earn-out payment of up to $25 million based on future financial performance
and certain other adjustments upon closing).
On August 6, 2018, Crosman
Corporation announced the name change of its parent entity to
Velocity Outdoor to reflect the diverse product portfolio within
the corporate umbrella and to highlight its strengths in the
broader hunting, shooting, and outdoor markets.
Ravin joins the Velocity Outdoor portfolio of leading brands
including Crosman and Benjamin Airguns, CenterPoint Archery and
Optics, LaserMax, Copperhead, and GameFace Airsoft.
Headquartered in Superior, WI,
Ravin Crossbows is a leading designer, manufacturer and innovator
of crossbows and accessories. Ravin primarily focuses on the
higher-end segment of the crossbow market and has developed
significant intellectual property related to the advancement of
crossbow technology, quickly establishing a reputation as a
manufacturer of the industry's most dependable, durable, accurate
and technologically-advanced line of crossbows. For the trailing
twelve months ended June 30, 2018,
Ravin Crossbows reported net revenue of approximately $46 million. CODI funded the purchase price
through a draw on its revolving credit facility.
"We are pleased to have acquired one of the most recognizable
brands among crossbow enthusiasts, representing our second
accretive add-on acquisition for Velocity Outdoor since acquiring
the company in 2017," stated Elias
Sabo, CEO of Compass Diversified Holdings. "Consistent with
the add-on acquisition of LaserMax last year, this transaction
further expands Velocity Outdoor's presence in attractive growth
markets, creates new cross-selling opportunities for the company
and expands its diverse portfolio of brands across retail and
dealer channels. As we progress through the year, our strong
financial position continues to enable us to identify and pursue
acquisitions that build long-term shareholder value and support our
ability to provide stable cash distributions."
Robert Beckwith, CEO of Velocity
Outdoor, commented "Ravin is a leading and trusted name in the
crossbow industry known for its technologically-advanced, durable
and high-end line of products. The acquisition of Ravin positions
Velocity Outdoor to more fully capitalize on the sizeable crossbow
market, further diversify its customer base and take advantage of
the product and market expertise inside of Ravin. The addition of
Ravin strengthens our existing offerings in the outdoor
recreational market, and enhances Velocity Outdoor's overall growth
prospects."
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 ten 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 and marketing of wearable baby carriers, strollers
and related products (Ergobaby);
- The design and manufacture of custom molded protective foam
solutions and OEM components (Foam Fabricators);
- The design and manufacture of premium home and gun safes
(Liberty Safe);
- The manufacture and marketing of branded, hemp-based food
products (Manitoba Harvest);
- The manufacture and marketing of portable food warming fuels
and creative ambience solutions for the hospitality and consumer
markets (Sterno Products); and
- The design, manufacture and marketing of hunting, shooting, and
outdoor recreational products including airguns, archery products,
optics and related accessories (Velocity Outdoor).
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, 2017 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