Compass Diversified Completes Acquisition of Performance Fit Innovator BOA Technology
October 19 2020 - 8:30AM
Compass Diversified (NYSE: CODI) (“CODI” or the “Company”), an
owner of leading middle market businesses, today announced the
completion of the Company’s previously announced acquisition of BOA
Technology Inc. (“BOA”), creators of the award-winning BOA® Fit
System, delivering superior fit and performance in the Outdoor,
Athletic, Workwear and Medical Bracing markets worldwide, pursuant
to an agreement entered into on September 20, 2020.
BOA was founded in 2001 with a revolutionary performance fit
system that transformed how snowboarders “dialed in” their boots
and offered a superior alternative to the traditional lace system.
Nearly two decades later, the BOA Fit System has become the leading
performance fit solution integrated into market-leading premium
brand partner products across an array of segments.
The acquisition was completed for a purchase price of $454
million (excluding working capital, other customary adjustments,
and acquisition related costs) and funded through available cash on
the Company’s balance sheet and a draw of $300 million on its
revolving credit facility. CODI's initial equity ownership in BOA
is 82%. BOA’s management team and existing shareholders invested
alongside CODI and own the remaining 18%.
“We are pleased to have completed our acquisition of BOA and
look forward to supporting its continued expansion and growth in
the years to come,” said Elias Sabo, CEO of Compass Diversified.
“The BOA Fit System is used in millions of boots, helmets, shoes,
and other performance products around the world and we could not be
more excited to welcome this extraordinary brand and team to the
CODI family.”
“The closing of this transaction is an important milestone in
BOA’s nearly 20-year history and I am confident that together with
CODI we will continue to push the limits of performance fit,” said
Shawn Neville, CEO of BOA. “CODI has the resources and expertise to
help propel our brand to its next level of growth and I look
forward to working closely with our collective teams as we execute
on our shared long term-vision for BOA.”
About BOA
Technology Inc. (“BOA
Technology”)
BOA Technology creators of the revolutionary, award-winning,
patented BOA Fit System, partners with market-leading brands to
make the best gear even better. Delivering fit solutions
purpose-built for performance, the BOA Fit System is featured in
products across snow sports, cycling, hiking/trekking, golf,
running, court sports, workwear, medical bracing, and prosthetics.
The system consists of three integral parts: a micro-adjustable
dial, super-strong lightweight laces, and low friction lace guides.
Each unique configuration is engineered for fast, effortless,
precision fit, and is backed by The BOA Guarantee. BOA Technology
Inc. is headquartered in Denver, Colorado with offices in Austria,
Hong Kong, China, South Korea, and Japan. For more information,
visit BOAFit.com.
About Compass Diversified (“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. For more information, visit
compassdiversified.com.
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 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 dial-based closure systems that
deliver performance fit across footwear, headwear and medical
bracing products (BOA Technology);
- 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 design and manufacture of baseball and softball equipment
and apparel (Marucci Sports);
- The manufacture and marketing of portable food warming systems
used in the foodservice industry, creative indoor and outdoor
lighting, and home fragrance solutions for the consumer markets
(Sterno); and
- The design, manufacture and marketing of airguns, archery
products, optics and related accessories (Velocity Outdoor).
Forward Looking Statements
All non-historical statements in this press release constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements include statements with regard to the future performance
of BOA and CODI. Words such as "believes," "expects," “continue,”
"projects," “potential,” and "future" or similar expressions, are
intended to identify forward-looking statements. These
forward-looking statements are subject to the inherent risks and
uncertainties in predicting future results and conditions, some of
which are not currently known to us. In addition to factors
previously disclosed in CODI’s reports filed with the SEC, the
following factors, among others, could cause actual results to
differ materially from forward-looking statements: difficulties and
delays in integrating BOA’s business or fully realizing cost
savings and other benefits; business disruption following the
closing of the transaction; changes in the economy, financial
markets and political environment; risks associated with possible
disruption in CODI’s operations or the economy generally due to
terrorism, natural disasters, social, civil and political unrest or
the COVID-19 pandemic; future changes in laws or regulations
(including the interpretation of these laws and regulations by
regulatory authorities); general considerations associated with the
COVID-19 pandemic and its impact on the markets in which we
operate; and other considerations that may be disclosed from time
to time in CODI’s publicly disseminated documents and filings.
Further information regarding CODI and factors which could affect
the forward-looking statements contained herein can be found in
CODI’s annual reports on Form 10-K, quarterly reports on Form 10-Q
and current reports on Form 8-K. Forward-looking statements speak
only as of the date they are made. 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.
Contacts
Investor Relations:The IGB Group Leon Berman
212-477-8438 lberman@igbir.com
Media ContactJonathan Keehner / Kate Thompson /
Julia SottosantiJoele Frank, Wilkinson Brimmer
Katcher212-355-4449
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