Compass Diversified to Acquire Lifoam Industries for $137M

By Tamara Parker • Monday, August 19 15:13 • Permanent Link

Altor Solutions, a subsidiary of Compass Diversified, has announced its plans to acquire Lifoam Industries LLC for a cash deal valued at $137 million. Lifoam, established in 1954, specializes in manufacturing temperature-controlled packaging products for various industries. The acquisition is set to expand Altor's presence in the cold-chain packaging sector and diversify its customer base. Lifoam's seven manufacturing locations across the U.S., advanced engineering capabilities, and ISTA standard 20 certified labs equipped with thermal testing chambers are expected to bring significant synergies and enhancements to Altor.

Altor's CEO, Terry Moody, emphasized that the acquisition will accelerate the company's long-term strategy to broaden its capabilities, particularly in cold-chain packaging solutions. The move is expected to save time and resources by gaining essential infrastructure, design, and certification capabilities from Lifoam. Additionally, Altor aims to attract new customers and better serve existing ones with an expanded range of products and extended geographic coverage.

Compass Diversified's CEO, Elias Sabo, highlighted the substantial commercial, research and development, and operational expertise that Lifoam brings to Altor's offerings. The acquisition is also set to expand Altor's geographic footprint to 23 facilities, enhancing its ability to service national accounts. Moreover, Lifoam's environmentally friendly measures and the development of bioffex, a plant-based expanded polystyrene alternative, align with Altor and Compass Diversified's broader ESG goals and initiatives.

The acquisition of Lifoam is expected to close in September, subject to customary closing conditions. Altor Solutions, based in St. Louis, Missouri, is an engineering-focused company dedicated to designing and manufacturing industrial protective packaging products and cold-chain packaging solutions for the life sciences and perishable goods sectors. Operating 16 advanced facilities across North America, the company specializes in the production and assembly of essential components for protective packaging, OEM parts, and temperature-controlled containers. Today the company's shares have moved 2.2% to a price of $21.64. If you want to know more, read the company's complete 8-K report here.

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