Compass Diversified (NYSE: CODI) has announced the sale of its majority-owned subsidiary, Ergobaby, to Highlander Partners, L.P. The sale was completed through a definitive agreement and the proceeds from the transaction will be used to pay down debt and for general corporate purposes.
Ergobaby is a global leader in premium juvenile products and the sale is a strategic move for Compass Diversified. The CEO of Compass Diversified, Elias Sabo, expressed pride in Ergobaby's position and stated that the proceeds from the sale will be used to acquire and manage innovative and disruptive brands, positioning the business for continued success and driving long-term shareholder value.
The CEO of Ergobaby, Jason Frame, thanked the CODI team for their support and expressed excitement for the company's next chapter with Highlander Partners. This sentiment was echoed by both legal counsels involved in the transaction.
Compass Diversified has consistently executed its strategy of owning and managing a diverse set of highly defensible, middle-market businesses across the industrial, branded consumer, and healthcare sectors since its IPO in 2006. 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.
Robert W. Baird & Co acted as the exclusive financial advisor, and Gibson, Dunn & Crutcher LLP acted as legal counsel to CODI, while Katten Muchin Rosenman LLP acted as legal counsel to Highlander.
The sale of Ergobaby represents a significant move for Compass Diversified, and the utilization of the proceeds to strengthen the company's position and drive long-term value is a key aspect of the announcement. Today the company's shares have moved -0.4% to a price of $23.0. For the full picture, make sure to review Compass Diversified's 8-K report.
