WESTPORT, Conn., Oct. 13, 2014 /PRNewswire/ -- Compass Diversified
Holdings (NYSE: CODI) ("CODI," "we," "our" or the "Company"), an
owner of leading middle market businesses, announced that on
October 10, 2014, it entered into an
agreement to acquire and consummated the acquisition of Candle Lamp
Company, LLC ("SternoCandleLamp").
Headquartered in Corona,
California, SternoCandleLamp is the leading manufacturer and
marketer of portable food warming fuel and creative table lighting
solutions for the foodservice industry. SternoCandleLamp's product
line includes wick and gel chafing fuels, butane stoves and
accessories, liquid and traditional wax candles, catering equipment
and lamps. For over 100 years, the iconic "Sterno" brand has been
synonymous with quality canned heat. The heritage of reliability
and innovation continues today, as SternoCandleLamp continues to
bring to market new products that give foodservice industry
professionals greater control over food quality and décor. For the
year ended December 31, 2013,
SternoCandleLamp reported net revenue of approximately $133.6 million.
The purchase price for SternoCandleLamp of $163 million was based on a total enterprise
value of $161.5 million and included
approximately $1.7 million of cash
and working capital adjustments. SternoCandleLamp generated
approximately $20.0 million of EBITDA
for the last twelve months ending September
30, 2014. Acquisition related costs were approximately
$2.7 million. CODI funded the
acquisition through a draw of $166
million on its revolving credit facility.
On a primary basis, CODI will initially own all of the common
equity ownership in SternoCandleLamp. In addition to its equity
investment in SternoCandleLamp, CODI provided loans totaling
approximately $91.6 million to
SternoCandleLamp as part of the transaction.
"We are pleased to add SternoCandleLamp to CODI's family of
niche leading businesses, as we continue to acquire companies with
strong market leadership, proven management, solid and stable cash
flow and attractive growth potential," said Alan Offenberg, CEO of Compass Diversified
Holdings. "For more than a century, the Sterno brand has stood for
reliability and convenience in the foodservice industry. The
management team, led by President & CEO Don Hinshaw, has built an industry leader by
focusing on quality and service, and we look forward to working
with them to continue to grow the business."
Mr. Offenberg added, "With the acquisition of SternoCandleLamp,
we have increased the current number of businesses we own to nine
in addition to CODI's 41% ownership interest in Fox Factory Holding
Corp. This platform acquisition, our second in 2014, is expected to
provide approximately $0.20 per share
of cash flow accretion on a full year basis and, combined with our
acquisition of Clean Earth Holdings in August 2014, has significantly strengthened our
earnings power. Going forward, we will continue to enter into
additional accretive acquisitions of leading businesses aimed at
creating long-term shareholder value."
Don Hinshaw, President & CEO
of SternoCandleLamp, will continue to serve in the same capacity at
the company. Mr. Hinshaw commented, "CODI's acquisition of
SternoCandleLamp is another important milestone for the company. We
are excited to join CODI's group of leading businesses. With CODI's
proven structure and history of growing niche leading companies, we
are well positioned to build on our leadership position and
brand."
Additional information on the acquisition will be available on
the Company's current report on Form 8-K that will be filed with
the Securities and Exchange Commission shortly.
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 nine 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);
- Environmental services for a variety of contaminated materials
including soils, dredged material, hazardous waste and drill
cuttings (Clean Earth, www.cleanearthinc.com);
- The design and marketing of wearable baby carriers, strollers
and related products (Ergobaby, www.ergobaby.com);
- The design and manufacture of premium home and gun safes
(Liberty Safe,
www.libertysafe.com); and
- The manufacture and marketing of portable food warming fuel and
creative table lighting solutions for the foodservice industry
(SternoCandleLamp, www.sternocandlelamp.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
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