Compass Diversified Announces Sale of Advanced Circuits
11 Januar 2023 - 10:15PM
Compass Diversified (NYSE: CODI) (“CODI” or the “Company”), an
owner of leading middle market businesses, today announced it has
entered into a definitive agreement (the “Agreement”) to sell its
majority owned subsidiary, Compass AC Holdings, Inc., the parent
company of Advanced Circuits, Inc. (“Advanced Circuits” or “the
Company”), to APCT, Inc. (“APCT”), a leading manufacturer of high
reliability printed circuit boards, and portfolio company of
Industrial Growth Partners.
Under the terms of the Agreement, Advanced
Circuits will be sold to APCT for an enterprise value of $220
million cash at close, subject to certain working capital and other
adjustments. CODI expects to realize a pre-tax gain on the sale of
Advanced Circuits of between $100 million to $110 million. Net
proceeds will be used to pay off outstanding revolver
borrowings.
“We partnered with John and Jeff Yacoub and the
Advanced Circuits management team over sixteen years ago. They have
been exceptional partners and friends over that period, and we are
proud to have supported them as they built a true industry leader
at Advanced Circuits,” said Elias Sabo, CEO of Compass Diversified.
“We believe our permanent capital structure and the longer holding
period it afforded CODI in this partnership helped create
significant value for our shareholders. APCT represents the right
partner for the Company in the next step of its journey and we wish
them success.”
John Yacoub, CEO of Advanced Circuits,
commented: “We are grateful for our partnership with the CODI team
and are excited about Advanced Circuits’ opportunities ahead under
new ownership. During our time with CODI, we have bolstered our
market-leading position and pursued other areas of growth. We look
forward to Advanced Circuits’ next chapter, and we’re confident
that our partnership with APCT will enable us to further our
position as an industry leader and deliver the high-quality
products our customers expect. We thank the CODI team for their
longstanding support.”
The closing of this transaction is subject to
customary terms and conditions, including regulatory approval, and
is expected to occur in February 2023.
Jefferies LLC acted as exclusive financial
advisor and Ropes & Gray LLP acted as legal counsel to CODI.
Kirkland & Ellis LLP acted as legal counsel to APCT.
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, branded consumer and healthcare 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 may contain certain
forward-looking statements, including statements with regard to the
future performance of CODI and its subsidiaries. Words such as
"believes," "expects," 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,
2021 and in 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.
Investor Relations
Gateway GroupCody Slach949.574.3860CODI@gatewayir.com
Media Relations
The IGB GroupLeon Berman212.477.8438lberman@igbir.com
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