WESTPORT, Conn., Jan. 24, 2018 /PRNewswire/ -- Compass
Diversified Holdings (NYSE: CODI) ("CODI" or the "Company"), an
owner of leading middle market businesses, announced that on
January 23, 2018, its subsidiary,
Sterno Products, LLC ("Sterno Products"), entered into a definitive
agreement to acquire Rimports Inc. ("Rimports") for a purchase
price of $145 million (excluding
working capital and a potential earn-out payment of up to
$25 million based on future financial
performance). The acquisition is expected to close within the next
45 days, subject to customary closing conditions.
Rimports is a leading manufacturer and distributor of branded
and private label scented wickless candle products used for home
décor and fragrance. Headquartered in Provo, UT, the company offers an extensive
line of wax warmers, scented wax cubes, essential oils and
diffusers, and other home fragrance systems, through the mass
retailer channel. For the trailing twelve months ended November 30, 2017, Rimports reported net revenue
of approximately $155 million. CODI
expects to fund the purchase price through a draw on its revolving
credit facility.
"This marks our second accretive acquisition since the year
began, including our recent platform acquisition," said
Alan Offenberg, CEO of Compass
Diversified Holdings. "This transaction will strengthen Sterno
Products by adding a complementary product line of scented wickless
candle products, and expanded retail channel penetration."
Elias Sabo, CODI's CEO-elect,
stated, "This will be Sterno Products' third add-on acquisition
since we acquired the company in 2014. We look forward to
continuing to support Sterno Products' strategic expansion into
complementary markets and products. Looking ahead, we will continue
to pursue opportunities to grow our subsidiaries through compelling
add-on acquisitions as well as platform acquisitions that build
shareholder value."
Don Hinshaw, President and CEO of
Sterno Products, commented, "We are thrilled with the acquisition
of Rimports, a leader in scented wax products, adding to our
current Sterno Products' portfolio of companies in our retail and
foodservice channels. Rimports is an excellent fit, given our
mutual commitment to high quality products, with a focus on
customer-centric processes and a passion for innovation."
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 design and marketing of purpose-built tactical apparel and
gear serving a wide range of global customers (5.11);
- The manufacture of quick-turn, small-run and production rigid
printed circuit boards (Advanced Circuits);
- 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, manufacture and marketing of airguns, archery
products, optics and related accessories (Crosman);
- 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).
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, 2016 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