Compass Diversified Holdings Acquires CamelBak Products, LLC for $257.5M
Compass Diversified Holdings (NYSE: CODI) announced today that it acquired a controlling interest in CamelBak Products, LLC on August 24, 2011.
The purchase price of $257.5 million for the membership interests of CamelBak is based on a total enterprise value of $245.0 million and included $12.5 million of cash and working capital adjustments. The acquisition was consummated through a majority-owned subsidiary, CamelBak Acquisition Corp. This structure will allow CODI to amortize a substantial portion of the purchase price for tax purposes. CODI funded the acquisition through drawings on its Revolving Credit Facility, as well as through funds provided by a private placement of 1.575 million of its common shares at the closing market price of $12.50 per share on August 23, 2011, to CGI Magyar Holdings LLC ("CMH"), its largest shareholder. An affiliate of CMH also purchased $45.0 million of convertible preferred stock in CamelBak Acquisition Corp. Acquisition related costs were approximately $4.2 million.
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