Compass Diversified Announces Acquisition of Lugano Diamonds & Jewelry, Inc.
07 September 2021 - 2:30PM
Compass Diversified (NYSE: CODI) (“CODI”), an owner of leading
middle market businesses, today announced it has acquired Lugano
Diamonds & Jewelry, Inc. (“Lugano” or the “Company”), a
designer, manufacturer and marketer of high-end, one-of-a-kind
jewelry, for an enterprise value of $256 million (excluding working
capital and certain other adjustments upon closing). Lugano will
continue to be led by its current leadership team, and existing
owners and management will retain a significant minority stake in
the Company.
Based in Newport Beach, California and founded in 2004, Lugano
makes one-of-a-kind jewelry for some of the world’s most discerning
clientele. In addition to its product offerings, Lugano frequently
partners with local, influential organizations to host and sponsor
more than 100 equestrian, social and philanthropic events
throughout the year. With a unique product catalogue, deep ties to
its local communities and its intimate, salon-based sales model,
Lugano builds long-lasting connections with its clients that have
allowed it to achieve consistent growth for over 15 years.
“We are excited to bring a growing, luxury goods brand like
Lugano to the CODI portfolio of niche-branded consumer
subsidiaries,” said Elias Sabo, CEO of CODI. “Lugano’s deep
commitment to product design and authentic connection with its
target clientele differentiates it from its competitors. We believe
that Lugano, as a trusted jewelry advisor offering a rare
combination of exclusivity and service, has a sustainable business
model capable of generating significant revenues and growth in both
the near- and long-term.”
Mr. Sabo continued: “From our perspective, Lugano
is ideally positioned to benefit from the resources and access to
capital that CODI will provide and build on the Company’s vision
and capabilities to become the next major jewelry brand. The
Company has demonstrated impressive growth, particularly over the
past several years, and is in the process of expanding its talented
team. CODI intends to support further growth as Lugano invests in
its merchandising strategy, including continuing its retail rollout
and expanding its event-driven marketing efforts. We look forward
to partnering with the Lugano team to achieve new levels of success
for the business in order to deliver value for our
shareholders.”
“This moment marks the culmination of years of work from the
entire Lugano team, and we are incredibly proud to partner with
CODI for the next phase of our growth,” said Moti Ferder,
Co-founder and CEO of Lugano. “For over a decade we have sought to
deliver one-of-a-kind jewelry through special, curated experiences
that stand apart from mainstream jewelry buying experiences. With
this dedication to high-quality and authentic connections with our
consumers, we have built a loyal, long-term consumer base, and we
expect CODI’s support will provide us the resources to introduce
more clients to Lugano’s model. Together, we are poised to
transform the high-end jewelry retail space for the benefit of our
valued clients.”
Gibson, Dunn & Crutcher LLP acted as legal counsel to CODI.
Holland & Knight LLP acted as legal advisor to Lugano.
Additional information on the acquisition will be available in
CODI's current report on Form 8-K that will be filed with the
Securities and Exchange Commission (“SEC”).
About Lugano Diamonds & Jewelry, IncFounded
in 2004 and headquartered in Newport Beach, California, Lugano is a
designer, manufacturer and marketer of high-end, one-of-a-kind
jewelry. Lugano conducts sales of its exclusive merchandise via
four retail salons in Newport Beach, Aspen, Palm Beach and Ocala,
as well as via pop-up showrooms at Lugano-hosted exclusive events.
These salons offer an intimate sales experience where clients can
schedule private, no-pressure appointments to view, try on and
discuss jewelry. Lugano-sponsored events provide an opportunity for
existing or new clients to network among like-minded individuals
and to bond over common interests in fine arts, charity and
sporting activities.
About Compass Diversified (“CODI”)
CODI owns and manages a diverse set of highly defensible North
American middle market businesses. Each of its current subsidiaries
is a leader in its niche market.
Leveraging its permanent capital base, long-term disciplined
approach and actionable expertise, CODI maintains controlling
ownership interests in each of its subsidiaries, maximizing its
ability to impact long-term cash flow generation and value
creation. CODI 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 its long-term growth and has consistently
generated strong returns through its culture of transparency,
alignment and accountability.
Our ten majority-owned subsidiaries are engaged in the following
lines of business:
- The design and marketing of purpose-built technical 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 design and manufacture of custom packaging, insulation and
componentry (Altor Solutions);
- The manufacture of engineered magnetic solutions for a wide
range of specialty applications and end-markets (Arnold
Magnetic Technologies);
- The design and marketing of dial-based fit systems that deliver
performance fit across footwear, headwear and medical bracing
products (BOA Technology);
- The design and marketing of wearable baby carriers, strollers
and related products (Ergobaby);
- The design, manufacture, and marketing of high-end,
one-of-a-kind jewelry (Lugano Diamonds);
- The design and manufacture of baseball and softball equipment
and apparel (Marucci Sports);
- The manufacture and marketing of portable food warming systems
used in the foodservice industry, creative indoor and outdoor
lighting, and home fragrance solutions for the consumer markets
(Sterno); and
- The design, manufacture and marketing of airguns, archery
products, optics and related accessories (Velocity
Outdoor).
Forward Looking Statements
This press release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, including statements with regard to the expectations
related to the future performance of Lugano and CODI. Words such as
"believes," "expects," “will,” “anticipates,” “intends,”
“continue,” "projects," “potential,” “assuming,” 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,
some of which are not currently known to CODI. In addition to
factors previously disclosed in CODI’s reports filed with the SEC,
the following factors, among others, could cause actual results to
differ materially from forward-looking statements: difficulties and
delays in integrating Lugano’s business or fully realizing cost
savings and other benefits; business disruption following the
closing of the transaction; changes in the economy, financial
markets and political environment; risks associated with possible
disruption in CODI’s operations or the economy generally due to
terrorism, natural disasters, social, civil and political unrest or
the COVID-19 pandemic; future changes in laws or regulations
(including the interpretation of these laws and regulations by
regulatory authorities); general considerations associated with the
COVID-19 pandemic and its impact on the markets in which we
operate; and other considerations that may be disclosed from time
to time in CODI’s publicly disseminated documents and filings.
Further information regarding CODI and factors which could affect
the forward-looking statements contained herein can be found in
CODI’s annual reports on Form 10-K, quarterly reports on Form 10-Q
and current reports on Form 8-K. Forward-looking statements speak
only as of the date they are made. 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.
Investor Relations:The IGB Group
Leon Berman 212-477-8438 lberman@igbir.com |
Media Contact:Joele Frank,
Wilkinson Brimmer KatcherJon Keehner / Kate Thompson / Lyle
Weston212-355-4449 |
Compass Diversified (NYSE:CODI)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Compass Diversified (NYSE:CODI)
Historical Stock Chart
Von Jul 2023 bis Jul 2024