WESTPORT, Conn., Nov. 21, 2011 /PRNewswire/ -- Compass Diversified
Holdings (NYSE: CODI) ("CODI"), an owner of leading middle market
businesses, announced today that its subsidiary, The ERGObaby
Carrier, Inc. ("ERGObaby"), has acquired Orbit Baby, Inc. ("Orbit
Baby") for a purchase price of $17.5
million.
Founded in 2004 and based in Newark,
California, Orbit Baby produces and markets a premium line
of stroller travel systems. Orbit Baby's high-quality products
include car seats, strollers and bassinets that are easily
interchangeable using a patented hub ring. Orbit Baby has
established a reputation for designing ergonomic and innovative
products, which are currently available throughout the United States and abroad. With this
acquisition, ERGObaby would have reported pro forma combined
revenue of approximately $53 million
for the twelve months ended September 30,
2011. The purchase price was funded with $15 million in cash from CODI's balance sheet and
from the issuance of $2.5 million in
ERGObaby equity.
Commenting on the transaction, Alan
Offenberg, CEO of CODI, said, "Since acquiring ERGObaby in
September 2010, we have made
significant investments aimed at strengthening its future prospects
and expanding its leadership position in the child mobility and
transport product category. The accretive add-on acquisition of
Orbit Baby is consistent with these important objectives as we
remain focused on utilizing our balance sheet strength to
capitalize on favorable growth opportunities."
Tim Bruer, CEO of ERGObaby,
stated, "This attractive acquisition provides a great opportunity
to further our rapid growth in the Baby Durables market. With this
complementary line of advanced stroller travel systems, we intend
to further expand our distribution levels in the U.S. and
internationally. We look forward to seamlessly integrating our
operations and working closely with Orbit Baby's management to
drive future performance."
Joseph Hei and Bryan White, co-founders of Orbit Baby, will
continue to serve in senior management roles. "We are excited to
join the ERGObaby family," said Mr. Hei. "As the fastest growing
brand for baby carriers backed by CODI's financing structure,
ERGObaby provides an ideal fit as we grow our ability to bring
world-class safety, convenience and design to solutions for taking
children on the go."
About ERGObaby
Founded in 2003, ERGObaby is a premier designer, marketer and
distributor of hands-free baby carriers and related products on a
worldwide basis for all babies, from newborn to toddler. ERGObaby's
strong track record in product innovation, reliability and safety
has led to numerous awards and accolades from consumer surveys and
publications, including Parenting Magazine, Pregnancy Magazine and
Wired Magazine. ERGObaby offers a broad range of environmentally
conscious babywearing products and accessories that are sold
through more than 700 retailers and web shops in the United States and internationally in
approximately 30 countries. To learn more, please visit ERGObaby's
website, www.ergobaby.com.
About Compass Diversified Holdings ("CODI")
Compass Diversified Holdings ("CODI") owns and manages a diverse
family of established North American middle market businesses. Each
of its eight subsidiaries is a leader in their 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
owners.
Our subsidiaries are engaged in the following lines of
business:
- The manufacture of quick-turn, prototype and production rigid
printed circuit boards (Advanced Circuits,
www.advancedcircuits.com);
- The design and manufacture of promotionally priced upholstered
furniture (American Furniture Manufacturing,
www.americanfurn.net);
- The design and manufacture of medical therapeutic support
surfaces and other wound treatment devices (Anodyne Medical
Device, also doing business and known as Tridien Medical,
www.anodynemedicaldevice.com);
- The design and manufacture of personal hydration products for
outdoor, recreation and military use (CamelBak
Products, www.camelbak.com);
- The design and marketing of wearable baby carriers and related
products (ERGObaby, www.ergobabycarriers.com);
- The design, manufacture and marketing of premium suspension
products for mountain bikes and powered off-road vehicles (Fox
Racing Shox, www.foxracingshox.com);
- The design, sourcing and fulfillment of logo based promotional
products (HALO Branded Solutions, www.halo.com); and
- The design and manufacture of premium home and gun safes
(Liberty Safe,
www.libertysafe.com).
To find out more about Compass Diversified Holdings, please
visit www.compassdiversifiedholdings.com.
This press release may contain certain forward-looking
statements, including statements with regard to the future
performance of the Company. 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 Securities and Exchange Commission for the year ended
December 31, 2010 and other filings
with the Securities and Exchange Commission. CODI undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
SOURCE Compass Diversified Holdings