WESTPORT, Conn., Dec. 15, 2014 /PRNewswire/ -- Compass Diversified
Holdings (NYSE: CODI) ("CODI"), an owner of leading middle market
businesses, announced today that its subsidiary, Clean Earth, Inc.
("Clean Earth"), has acquired AES Environmental LLC ("AES") for a
purchase price of $16.6 million.
AES provides environmental services, managing hazardous and
non-hazardous waste from off-site generators. AES has two fully
permitted hazardous waste facilities located in Calvert City, Kentucky and Morgantown, West Virginia, serving industrial
and government customers across the region. AES also provides
transportation and recycling services. For the trailing twelve
months ended October 31, 2014, AES
reported net revenue of approximately $24.8
million. CODI funded the purchase price through available
cash on its balance sheet and a draw on its revolving credit
facility.
Commenting on the transaction, Alan
Offenberg, CEO of CODI, said, "Following our acquisition of
Clean Earth in August, we are excited to enhance its growth
potential with the accretive add-on acquisition of AES. This
attractive business will assist Clean Earth in providing
environmental services to a larger customer base by penetrating new
markets across the Midwest and Mid-Atlantic regions. Going forward,
we remain focused on using our strong balance sheet and financial
flexibility to take advantage of other market opportunities by
pursuing quality platform companies as well as additional
add-ons."
Chris Dods, CEO of Clean Earth, stated, "AES enhances our future
prospects. This acquisition supports our growth objectives by
increasing our geographic footprint into new and strategic
locations while introducing new offerings to our capabilities. We
plan on using our operational expertise to drive a seamless
integration process and remain committed to achieve the highest
environmental and safety standards for Clean Earth."
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);
- The design and manufacture of promotionally priced upholstered
furniture (American Furniture Manufacturing);
- 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);
- The manufacture of engineered magnetic solutions for a wide
range of specialty applications and end-markets (Arnold Magnetic
Technologies);
- The design and manufacture of personal hydration products for
outdoor, recreation and military use (CamelBak
Products);
- Environmental services for a variety of contaminated materials
including soils, dredged material, hazardous waste and drill
cuttings (Clean Earth);
- The design and marketing of wearable baby carriers, strollers
and related products (Ergobaby);
- The design and manufacture of premium home and gun safes
(Liberty Safe); and
- The manufacture and marketing of portable food warming fuel and
creative table lighting solutions for the foodservice industry
(SternoCandleLamp).
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 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.
This press release may contain certain forward-looking
statements, including statements with regard to the future
performance of CODI. 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 SEC for the year ended December 31, 2013, the Form 10-Q filed by CODI
with the SEC for the quarter ended September
30, 2014 and other filings with the SEC. CODI undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
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SOURCE Compass Diversified Holdings