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8-K - FORM 8-K - Compass Group Diversified Holdings LLC | w77954e8vk.htm |
EX-99.1 - EX-99.1 - Compass Group Diversified Holdings LLC | w77954exv99w1.htm |
Exhibit 99.2
Compass Diversified Holdings
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Investor Relations and Media Contacts: | |
James J. Bottiglieri
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The IGB Group | |
Chief Financial Officer
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Leon Berman / Michael Cimini | |
203.221.1703
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212.477.8438 / 212.477.8261 | |
jbottiglieri@compassdiversifiedholdings.com
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lberman@igbir.com / mcimini@igbir.com |
Compass Diversified Holdings Acquires Liberty Safe and Security
Products, Inc.
Products, Inc.
Expands Family of Niche Leading Businesses with Accretive Acquisition
Westport, Conn., April 1, 2010 Compass Diversified Holdings (Nasdaq: CODI) (CODI or the
Company) an owner of leading middle market businesses, announced today that on March 31, 2010, it
entered into an agreement to acquire and consummated the acquisition of Liberty Safe and Security
Products, Inc. (Liberty).
Based in Payson, Utah and founded in 1988, Liberty is the premier designer, manufacturer and
marketer of home and gun safes in North America. From its over 200,000 square foot manufacturing
facility, the company produces a wide range of home and gun safe models in a broad assortment of
sizes, features and styles. Products are marketed under the Liberty brand, as well as a portfolio
of licensed and private label brands, including Remington, Cabelas and John Deere. The companys
products are the market share leader and are sold in various sporting goods, farm and fleet, and
home improvement retailers. Liberty also has the largest independent dealer network in the
industry. For the year ended December 31, 2009, Liberty reported revenue of $73.8 million.
CODI paid approximately $70 million to purchase Liberty, funding the acquisition with drawings
under CODIs revolving credit facility. In addition, CODI paid approximately $1.5 million in
expenses associated with this transaction. CODIs initial ownership position in the company is
approximately 96%.
Commenting on the acquisition, Joe Massoud, CEO of Compass Diversified Holdings, said, Liberty
represents an ideal addition to our family of niche leading businesses. The company possesses
those important characteristics that we seek in all of our businesses, including strong industry
positioning, experienced management, stable cash flows and favorable macro trends. Demand among
avid shooting sports enthusiasts remains healthy and we expect to benefit from increasing awareness
of the need for safe storage of firearms. In addition, we believe that there is a largely untapped
market
for premium home safes that represents an important growth avenue for the company going forward.
We are enthusiastic about the prospect of working with the Liberty management team.
Mr. Massoud added, We expect the acquisition of Liberty to immediately provide our owners with ten
to fifteen cents per share of cash flow accretion on a full year basis. Furthermore, we are
optimistic that in the current environment, we will have additional opportunities to acquire
businesses attractively on behalf of our shareholders.
Jeff Talley, President and Chief Executive Officer of Liberty, will continue to serve in the same
capacity at the company. Mr. Talley commented, We are excited about Compasss acquisition of
Liberty. We look forward to continuing our long history of providing outstanding products to our
customers. In addition, we expect to work with the Compass team to assess and implement a range of
marketing and operating initiatives designed to further enhance cash flow.
Additional information on the acquisition will be available on the Companys current report on Form
8-K that will be filed with the Securities and Exchange Commission on or before April 2, 2010.
About Compass Diversified Holdings (CODI)
Compass Diversified Holdings (CODI) was formed to acquire and manage a group of middle market
businesses that are headquartered in North America. Its subsidiaries are a diverse group of
businesses with highly defensible market positions.
CODIs structure involves acquisition of controlling ownership interests in its subsidiaries in
order to maximize its ability to impact each subsidiarys performance. The Company provides both
debt and equity capital for its subsidiaries, contributing to their financial and operating
flexibility. CODIs model involves discipline in identifying and valuing businesses, proactive
engagement with the management teams of the companies it acquires and the monetization of its
subsidiaries when it believes that doing so will maximize shareholder value. The Company seeks to
provide an extraordinarily high level of transparency in financial reporting and governance
processes for the benefit of its shareholders. CODI currently has seven subsidiaries operating in
distinct market niches. The cash flows generated by these businesses are utilized in pursuit of
CODIs dual objectives of investing in the long-term growth of the Company and making distributions
of cash to its shareholders.
Our Subsidiary Businesses
Each of our companies is a leader in their respective market niche.
Based in Ecru, MS, American Furniture Manufacturing is a manufacturer of promotionally priced
upholstered furniture. Visit www.americanfurn.net.
Based in Coral Springs, FL, Anodyne Medical Device is a designer and manufacturer of medical
therapeutic support surfaces and other wound treatment devices. Visit
www.anodynemedicaldevice.com.
Based in Aurora, CO, Advanced Circuits is a manufacturer of quick-turn, prototype and production
rigid printed circuit boards (PCBs). Visit www.advancedcircuits.com.
Based in Watsonville, CA, Fox Racing Shox is a designer, manufacturer and marketer of suspension
products for mountain bikes and powered off-road vehicles. Visit www.foxracingshox.com.
Based in Sterling, IL, Halo Lee Wayne is a one-stop resource for design, sourcing and
fulfillment of promotional products. Visit www.haloleewayne.com.
Based in Payson, UT, Liberty Safe is a designer and manufacturer of premium home and gun safes.
Visit www.libertysafe.com.
Based in Cincinnati, OH, Staffmark is a provider of temporary staffing services, operating
approximately 300 locations in 29 states. Visit www.staffmark.com.
To find out more about Compass Diversified Holdings, please visit
www.compassdiversifiedholdings.com.
This
press release may contain certain forward-looking statements, including statements with
regard to the future performance of the Company. 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 Securities and Exchange Commission for
the year ended December 31, 2009 and other filings with the Securities and Exchange Commission.
CODI undertakes no obligation to publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
A copy of this press release, and of past press releases, is available on Compass Diversified
Holdings website located at www.compassdiversifiedholdings.com.
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