WESTPORT, Conn., Jan. 25, 2016 /PRNewswire/ -- Compass Diversified
Holdings (NYSE: CODI) ("CODI" or the "Company"), an owner of
leading middle market businesses, announced today that its
subsidiary, Sterno Products, LLC ("Sterno Products"), has acquired
Northern International, Inc. ("Northern International") for a
purchase price of C$50 million
(including a C$2.5 million earn-out
payable over two years, but excluding working capital and certain
other adjustments).
Northern International is the industry leader in flameless
candles and outdoor lighting products for the retail segment.
Northern International has been at the forefront of LED lighting
product development, and continues to lead the industry with the
Candle Impressions and Paradise brands. Sterno Products'
acquisition of Northern International strengthens its current
position in the foodservice lighting segment by providing ambience
solutions for every situation, and expands Northern International's
ability to grow in North America
and internationally. For the trailing twelve months ended
December 31, 2015, Northern
International reported net revenue of approximately C$118 million and EBITDA of approximately
C$7 million. CODI funded the purchase
price through available cash on its balance sheet.
Commenting on the transaction, Alan
Offenberg, CEO of CODI, said, "Since acquiring Sterno
Products a little over a year ago, the company has continued to
build upon its leadership position and the strength of the iconic
'Sterno' brand. We are pleased to make this accretive add-on
acquisition of Northern International as it is consistent with
Sterno Products' recent name change and its focus on expanding the
product line into complementary categories and channels. Going
forward, we will continue to pursue opportunities to grow our
subsidiaries by making attractive add-on acquisitions as well as
platform acquisitions that create long-term shareholder value."
"The addition of the Northern International team to the Sterno
Products team is an exciting event for us as we have complimentary
product lines, common beliefs in high quality products and
services, and a passion to innovate," said Don Hinshaw, President and CEO of Sterno
Products. "Together, these two companies will provide a broad
portfolio of industry leading products for the foodservice and
retail markets."
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 fuels
and creative ambience solutions for the hospitality and consumer
industries (Sterno Products).
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-subsidiary-sterno-products-acquires-northern-international-300208829.html
SOURCE Compass Diversified Holdings