Compass Diversified Announces Sale of Ergobaby

Core Viewpoint - Compass Diversified has completed the sale of its majority-owned subsidiary, Ergobaby, to Highlander Partners, aiming to utilize the proceeds for debt reduction and corporate purposes while continuing to acquire innovative brands [1][3]. Group 1: Company Overview - Compass Diversified (CODI) is an owner of leading middle-market businesses, focusing on industrial, branded consumer, and healthcare sectors since its IPO in 2006 [4]. - The company employs a strategy of maintaining controlling ownership interests in its subsidiaries to maximize long-term cash flow generation and value creation [4]. - CODI leverages its permanent capital base and expertise to provide both debt and equity capital for its subsidiaries, contributing to their financial flexibility [4]. Group 2: Transaction Details - The sale of Ergobaby was executed through a definitive agreement with Highlander Partners, a private investment firm based in Dallas [1]. - Proceeds from the transaction will be allocated to pay down debt and for general corporate purposes, indicating a focus on financial health and operational flexibility [3]. - The CEO of Compass Diversified expressed confidence in the future, stating the intention to use the sale proceeds to acquire and manage innovative brands, thereby driving long-term shareholder value [2]. Group 3: Leadership Comments - Elias Sabo, CEO of Compass Diversified, acknowledged Ergobaby's position as a global leader in premium juvenile products and expressed gratitude for the contributions of the Ergobaby team [2]. - Jason Frame, CEO of Ergobaby, expressed appreciation for the support from CODI and optimism for future success under Highlander Partners [4].