WESTPORT, Conn., Dec. 15, 2015 /PRNewswire/ -- Compass
Diversified Holdings (NYSE: CODI) ("CODI" or the "Company"), an
owner of leading middle market businesses, announced today that its
subsidiary, Fresh Hemp Foods Ltd. ("Manitoba Harvest"), has
acquired Hemp Oil Canada, Inc. ("HOCI") for a purchase price of
C$42 million, not including working
capital and certain other adjustments.
Founded in 1998, HOCI is a pioneer and leading bulk wholesale
producer, private label packager and custom processor of hemp based
food products and ingredients. HOCI offers a broad range of hemp
based products, including certified Organic, Kosher, and Halal. The
company's recently completed state-of-the-art 35,000 square foot
production facility is allergen-free and Food Safety System
Certification (FSSC) 2200 certified. For the trailing twelve months
ended October 31, 2015, HOCI reported
net revenue of approximately C$18
million and EBITDA of approximately C$5 million. CODI funded the purchase price
through available cash on its balance sheet.
Commenting on the transaction, Alan
Offenberg, CEO of CODI, said, "Following our platform
acquisition of Manitoba Harvest in July, we are pleased to make
this accretive add-on acquisition, which will further drive
Manitoba Harvest's already strong growth trajectory. By adding this
attractive business, Manitoba Harvest will significantly expand its
manufacturing capacity, build out its ingredients business, and
grow and diversify its customer base. With a strong balance sheet
and considerable financial flexibility, CODI remains well
positioned to continue to pursue both attractive platform and
add-on acquisitions."
Mike Fata, CEO of Manitoba
Harvest, stated, "HOCI is a pioneer in the industry and we are
excited to work with its management team and experienced staff, as
we seek to further accelerate our growth potential. HOCI's leading
ingredients and private label business compliments our branded
business, making it easier than ever for people to enjoy delicious
and nutritious hemp foods at every eating occasion."
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.
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SOURCE Compass Diversified Holdings