WESTPORT, Conn., Oct. 6, 2015 /PRNewswire/ -- Compass
Diversified Holdings (NYSE: CODI) ("CODI" or the "Company"), an
owner of leading middle market businesses, announced today that it
has simultaneously entered into a definitive agreement to sell and
consummated the sale of its
majority owned subsidiary, American Furniture Manufacturing, Inc.
("American Furniture") to a private investor group, including
certain members of American Furniture's management team, for a
total enterprise value of $24.1
million.
After the payment of all of the transaction expenses, CODI
received approximately $23.5 million
of proceeds from the sale at closing. This amount was in respect of
its debt and equity interests in American Furniture and the payment
of accrued interest and fees. CODI acquired American
Furniture on August 31, 2007 for
approximately $93 million and, in
addition to impairments recorded in prior years, CODI anticipates
recording a loss on the sale of American Furniture of approximately
$14 million. The proceeds will
enhance the Company's liquidity and strengthen its balance
sheet.
"Over the past several years, we have worked closely with the
new management team of American Furniture and deeply appreciate
their effort and professionalism in successfully implementing a
turnaround amid a challenging industry environment," stated
Alan Offenberg, CEO of Compass
Diversified. "We wish the company continued success in the
future."
Mr. Offenberg added, "Looking ahead, we remain focused on
drawing upon our family of leading niche businesses to grow cash
flows and provide shareholders with attractive cash distributions.
With significant financial flexibility, we are also well positioned
to continue acquiring leading middle market companies with a reason
to exist, while taking advantage of add-on acquisition
opportunities and reinvesting in the growth of our current
subsidiaries."
About Compass Diversified Holdings
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 eight majority-owned subsidiaries are engaged in the
following lines of business:
- The manufacture of quick-turn, small-run and production rigid
printed circuit boards (Advanced Circuits);
- 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);
- 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);
- The manufacture and marketing of branded, hemp-based food
products (Manitoba Harvest); 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, 2014 and other filings with the SEC.
Except as required by law, CODI undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/compass-diversified-holdings-announces-sale-of-american-furniture-manufacturing-inc-300155127.html
SOURCE Compass Diversified Holdings