WESTPORT, Conn., May 29, 2018 /PRNewswire/ -- Compass
Diversified Holdings (NYSE: CODI) ("CODI" or the "Company"), an
owner of leading middle market businesses, announced today that its
subsidiary, Clean Earth, Inc. ("Clean Earth"), has acquired ESMI
Companies ("ESMI") and MKC Enterprises, Inc. ("MKC"). CODI funded
the purchase prices of the acquisitions of ESMI, which closed in
May, and MKC, which closed in March, with available cash on its
balance sheet and a draw on its revolving credit facility.
ESMI is a leading provider of remediation services across
New Hampshire and New York. The company uses thermal desorption
technology for the remediation, recycling, and beneficial reuse of
non-hazardous contaminated materials including soil, stone, dredge,
mine tailings, and paper mill sludge. ESMI operates out of two
fully-permitted fixed facilities in Loudon, New Hampshire and Fort Edward, New York, and also offers on-site
remediation options through the use of mobile treatment
equipment.
MKC is a full-service provider of boutique hazardous waste
management services. Founded in 1980, the company owns and operates
a fully-permitted RCRA Part B hazardous waste facility in
Doraville, Georgia. The company
works with institutional and industrial clients to manage the
identification, labeling, collection, disposal, and documentation
of their hazardous wastes.
For the fiscal year ended December 31,
2017, ESMI and MKC reported combined net revenues of
approximately $25 million.
Commenting on the transactions, Elias
Sabo, CEO of Compass Diversified Holdings, stated, "These
accretive add-on acquisitions will grow Clean Earth's geographic
presence further into New England and the Southeast U.S. while
expanding the company's industry-leading and extensive service
offerings. MKC's specialized lab packing capabilities will enable
Clean Earth to enhance its services within the high
barrier-to-entry hazardous chemical waste stream, while ESMI's
fixed facilities and on-site treatment capabilities will expand the
processing capabilities of our soil business unit. Going forward,
CODI will continue to use its balance sheet strength to capitalize
on accretive add-on opportunities that enhance our subsidiaries and
deliver long-term value to shareholders."
Chris Dods, CEO of Clean Earth, commented, "Recognized leaders
in their respective lines of business, both MKC and ESMI have
strong track records of providing reliable, safe waste management
solutions. The additions of these businesses will meaningfully
strengthen our hazardous waste and soil business segments,
broadening our geographic reach while positioning Clean Earth to
provide a deeper and more comprehensive service offering to both
existing and new customers."
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 ten 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 custom molded protective foam
solutions and OEM components (Foam Fabricators);
- 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, 2017 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