WESTPORT, Conn., May 9, 2016 /PRNewswire/ -- Compass Diversified
Holdings (NYSE: CODI) ("CODI" or the "Company"), an owner of
leading middle market businesses, announced that on May 9, 2016 its subsidiary, The ERGObaby Carrier,
Inc. ("ERGObaby"), entered into a definitive agreement to acquire
New Baby Tula LLC ("Baby Tula") for a purchase price of
$73.8 million (excluding working
capital and a potential earn-out payment of $8.2 million based on 2017 financial
performance). The acquisition is expected to close within the next
45 days, subject to customary closing conditions.
Baby Tula was founded in 2009 and makes premium baby carriers,
toddler carriers, slings, blankets and wraps that comfortably and
ergonomically support the bond between parent and child. Baby Tula
has a strong direct channel presence with growing international
distribution relationships. The company sells to retailers and
consumers in more than 70 countries worldwide, including the U.S.,
Canada and Australia. For the fiscal year ended
December 31, 2015, Baby Tula reported
net revenue of approximately $24.8
million and EBITDA of approximately $13.1 million. CODI expects to fund 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, "We are pleased to once again
take advantage of CODI's financial strength to make an accretive
and strategic add-on acquisition that will increase value for our
shareholders. The addition of Baby Tula will strengthen ERGObaby's
already attractive industry positioning through product extension
as well as channel and geographic expansion. We remain enthusiastic
about ERGObaby's prospects and look forward to working with the
company's management team to integrate this premium brand and
continue ERGObaby's historically strong growth."
Margaret Hardin, CEO of ERGObaby,
stated, "By combining ERGObaby's broad portfolio of carriers with
Baby Tula's wrap conversions, slings, blankets, as well as toddler
& standard carriers, we believe we are offering babywearing
parents the best choices and assortment for their growing families.
We are excited to work with the Baby Tula team in achieving our
common goal of building a global community of confident parents
with smart, ergonomic solutions that enable and encourage bonding
between parents and babies."
Ula Tuszewicka, Co-Founder of Baby Tula, stated, "When we first
started Baby Tula, Mike Pham and I
wanted to build a community of like-minded parents and share our
own positive babywearing experiences in a unique and supportive
way. We are proud to be joining forces with ERGObaby, a
company whose culture and passion for babywearing is similar to our
own. We bonded over a common goal of broadening the overall
babywearing community by providing more unique babywearing choices
to a wide range of parents."
Baby Tula will become a wholly owned subsidiary of ERGObaby and
continue to be led by co-founders Ula Tuszewicka and Mike Pham. Each brand will continue to design
and manufacture products under their current brand names and
operate their businesses from San
Diego and Los Angeles,
respectively. Margaret Hardin
remains the CEO of ERGObaby and its subsidiaries.
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 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
markets (Sterno Products).
In addition, we own approximately 33% 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.
To find out more about Compass Diversified Holdings, please
visit www.compassdiversifiedholdings.com.
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, 2015 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