Compass Diversified Completes Acquisition of Leading Synthetic Insulation Provider PrimaLoft
13 Juli 2022 - 2:30PM
Compass Diversified (NYSE: CODI) (“CODI” or the “Company”), an
owner of leading middle market businesses, today announced the
completion of the Company’s previously announced acquisition of
PrimaLoft Technologies Holdings, Inc., the parent company of
PrimaLoft, Inc. (“PrimaLoft”), from Victor Capital Partners and
minority owners, pursuant to an agreement entered into on June 4,
2022.
Based in Latham, New York, PrimaLoft was
established in 1983 by Albany International Corporation (NYSE: AIN)
in response to a U.S. Army request to develop a synthetic
insulation for soldiers that replicated the warmth and weight
characteristics of traditional goose down, but also remained warm
when wet. In addition to maintaining high performance in wet
conditions, the portfolio of PrimaLoft® synthetic insulations
offers products that can both mimic natural down aesthetics and
provide the freedom to design garments ranging from stylish puffers
to lightweight performance apparel. PrimaLoft insulations also
offer superior economics to the brand partner and enable better
sustainability characteristics through the use of recycled,
low-carbon inputs.
The acquisition was completed for a purchase
price of $530 million (excluding working capital, other customary
adjustments, and acquisition related costs). The Company funded the
acquisition via a new $400 million five-year Term Loan A loan and
amended its existing credit agreement to extend its $600 million
Revolver through July 2027. CODI’s initial equity ownership in
PrimaLoft is approximately 91%. PrimaLoft’s management team and
existing shareholders invested alongside CODI and own the remaining
9%.
“We are excited to have completed our
acquisition of PrimaLoft and look forward to partnering with their
experienced leadership team to capitalize on the significant market
opportunities ahead,” said Elias Sabo, CEO of Compass Diversified.
“PrimaLoft has earned the trust of over 950 leading brands and
we’re pleased to support its next phase of growth.”
Mike Joyce, President and CEO of PrimaLoft,
commented: “The closing of this transaction is an important
milestone in PrimaLoft’s nearly 40-year history, and I’m excited to
be partnering with the CODI team as we work to drive continued
growth. CODI has the resources and partnership experience we need
to advance our company to the next level, and we look forward to
collaborating and growing together.”
About PrimaLoft
PrimaLoft, Inc. is a branded, advanced material
technology company based in Latham, New York and is a world leader
in the research and innovative development of high-performance
material solutions, specializing in insulations and fabrics.
PrimaLoft® insulation was originally developed for the U.S. Army as
a water-resistant, synthetic alternative to down. Since 1983, a
heritage of proven & tested technologies has built trust across
the textile industry, with more than 950 global brands using
PrimaLoft products in outdoor, lifestyle, home furnishings, work
wear, hunting and military applications. With its Relentlessly
Responsible™ mission, PrimaLoft strives to balance innovation,
performance and sustainability in the pursuit of a better future.
Today, the brand is recognized as a benchmark for providing
unsurpassed comfort in any condition, while lessening its impact on
the environment.
About Compass Diversified
Since its founding in 1998, CODI has
consistently executed on its strategy of owning and managing a
diverse set of highly defensible, middle-market businesses across
the niche industrial and branded consumer sectors. The Company
leverages its permanent capital base, long-term disciplined
approach, and actionable expertise to maintain controlling
ownership interests in each of its subsidiaries, maximizing its
ability to impact long-term cash flow generation and value
creation. 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
has consistently generated strong returns through its culture of
transparency, alignment and accountability. For more information,
please visit compassdiversified.com.
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 CODI and PrimaLoft. 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
PrimaLoft’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
Compass Diversifiedirinquiry@compassdiversified.com
Gateway GroupCody Slach949.574.3860CODI@gatewayir.com
Media Relations
The IGB GroupLeon Berman212.477.8438lberman@igbir.com
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