WESTPORT, Conn., July 16, 2014 /PRNewswire/ -- Compass
Diversified Holdings (NYSE: CODI) ("CODI," "we," "our" or the
"Company"), an owner of leading middle market businesses, announced
today that Fox Factory Holding Corp. ("FOX") (Nasdaq: FOXF) closed
on a public offering of 5,750,000 shares held by certain FOX
shareholders, including the Company, at a price of $15.50 per share for total net proceeds to
selling shareholders of approximately $84.4
million.
As a selling shareholder, the Company sold a total of 4,466,569
shares of FOX common stock, including 633,955 shares sold in
connection with underwriters' exercise of the over-allotment option
in full, for total net proceeds of approximately $65.5 million. Upon completion of the offering,
CODI's ownership in FOX was lowered from approximately 53% to 41%,
or 15,108,718 shares of FOX's common stock.
Alan Offenberg, CODI's Chief
Executive Officer, commented, "With this transaction, we have
further strengthened our financial liquidity and increased the
total gains realized from monetizing interests in our
subsidiaries. As a result of this sale, the Company
anticipates deconsolidating FOX which is consistent with our
intention to streamline CODI's consolidated financial reporting. We
continue to be the largest shareholder of FOX and remain excited by
the company's future 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 seven majority-owned 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.ergobaby.com); and
- The design and manufacture of premium home and gun safes
(Liberty Safe,
www.libertysafe.com).
In addition, we own approximately 41% of the common stock of Fox
Factory Holding Corp. ("FOX", Nasdaq: FOXF), a former subsidiary
business that completed its initial public offering in August 2013. FOX, www.ridefox.com, designs and
manufactures high-performance suspension products primarily for
mountain bikes, side-by-side vehicles, on-road and off-road
vehicles and trucks, all-terrain vehicles, snowmobiles, specialty
vehicles and applications, and motorcycles.
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, 2013 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