WESTPORT, Conn., May 2, 2012 /PRNewswire/ -- Compass
Diversified Holdings (NYSE: CODI) ("CODI" or the "Company"), an
owner of leading middle market businesses, announced that on
May 1, 2012, it simultaneously
entered into a definitive agreement to sell and consummated the
sale of its majority owned subsidiary, HALO Holding Corporation
("HALO"), to Candlelight Investment Holdings, Inc., for a total
enterprise value of $76.5
million.
The transaction is subject to customary escrow and working
capital provisions. After these adjustments, as well as for an
allocation to HALO's non-controlling shareholders and the payment
of all of the transaction expenses, CODI received approximately
$66.4 million of total proceeds from
the sale at closing. This amount was in respect of its debt and
equity interests in HALO, which was acquired by CODI on
February 28, 2007, and the payment of
accrued interest and fees. The proceeds were used to repay
outstanding debt under the Company's revolving credit facility.
CODI anticipates that its portion of the proceeds from the sale
will approximate its book carrying amount for HALO and as a result
no significant gain or loss for this transaction will be recorded
for the quarter ended June 30,
2012.
"The divestiture of HALO allows us to increase our liquidity and
supports our efforts to maximize value for our owners," stated
Alan Offenberg, CEO of Compass
Diversified Holdings. "We enjoyed working with HALO over the past
five years and wish the company continued success."
Mr. Offenberg added, "Our considerable financial strength bodes
well for CODI's ability to take advantage of favorable platform and
add-on acquisitions that are accretive, as well as to invest in the
growth of our current subsidiaries. We also remain dedicated to
providing attractive cash distributions as we have consistently
done in the past."
Additional information on the transaction will be available on
the Company's current report on Form 8-K that will be filed with
the Securities and Exchange Commission (the "SEC") later this
week.
About Compass Diversified Holdings ("CODI")
CODI owns and manages a diverse family of established
North American middle market businesses. Each of its eight current
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.tridien.com);
- The manufacture of engineered magnetic solutions for a wide
range of specialty applications and end-markets (Arnold Magnetic
Technologies, www.arnoldmagnetics.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, strollers
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 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, 2011 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