Compass Diversified Completes Sale of Advanced Circuits
15 Februar 2023 - 2:00PM
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 sale of 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.
The sale price was based on an enterprise value of $220 million
plus estimated cash and working capital adjustments subject to
customary post-closing true-ups. After these adjustments, as well
as for an allocation to ACI’s non-controlling shareholders and the
payment of transaction expenses, CODI received approximately $170
million of total proceeds from the sale at closing. This amount was
in respect of its debt and equity interests in ACI and the payment
of accrued interest. As previously announced, CODI expects to
record a pre-tax gain of approximately $100 million to $110 million
from the sale. Net proceeds will be used to pay off outstanding
revolver borrowings.
Elias Sabo, CEO of Compass Diversified, stated,
“We are deeply proud of our partnership and success with John and
Jeff Yacoub, which started more than sixteen years ago. CODI’s
permanent capital structure and support throughout this partnership
has generated significant value for our shareholders, and we are
grateful for the Advanced Circuit team’s contributions and look
forward to their continued success.”
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 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 of
gains to be realized in connection with the sale of ACI. Words such
as "believes," "expects," “anticipates,” “intends,” "projects,"
“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. 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 other
filings with the SEC, including 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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