WESTPORT, Conn., June 25 /PRNewswire-FirstCall/ -- Compass Diversified Holdings (NASDAQ:CODI), a leading acquirer and manager of middle market businesses, announced today that its wholly owned subsidiary, Compass Group Diversified Holdings LLC (the "Company") consummated the sale of Silvue Technologies Group, Inc. ("Silvue") to Mitsui Chemicals, Inc. pursuant to a definitive agreement signed on May 8, 2008.
Under the terms of the previously announced agreement, the Company sold Silvue for a total enterprise value of approximately $95 million, and received approximately $70.6 million of total proceeds from the sale, after payment to minority shareholders and payment of all transaction expenses, in respect of its debt and equity interests in Silvue. Silvue was acquired on May 16, 2006 for a total enterprise value of approximately $44 million, utilizing proceeds from CODI's initial public offering. The Company anticipates recording a gain on the sale of Silvue of between $37.5 million and $40 million.
About Compass Diversified Holdings ("CODI")
CODI was formed to acquire and manage a group of middle market businesses that are headquartered in North America. CODI provides public investors with an opportunity to participate in the ownership and growth of companies, which have historically been owned by private equity firms, wealthy individuals or families. CODI's disciplined approach to its target market provides opportunities to methodically purchase attractive businesses at values that are accretive to its shareholders. For sellers of businesses, CODI's unique structure allows CODI to acquire businesses efficiently with no financing contingencies and, following acquisition, to provide its companies with substantial access to growth capital.
Upon acquisition, CODI works with the executive teams of its subsidiary companies to identify and capitalize on opportunities to grow those companies' earnings and cash flows. These cash flows support distributions to CODI shareholders.
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Fox Factory Holding Corp. and its consolidated subsidiaries, referred to as Fox, is a designer, manufacturer and marketer of high-end suspension products for mountain bikes, all terrain vehicles, snowmobiles and other off- road vehicles. Fox is based in Watsonville, CA.
Halo Lee Wayne LLC and its consolidated subsidiaries, referred to as Halo, is a distributor of customized promotional products and serves more than 30,000 customers as a one-stop-shop resource for design, sourcing, management and fulfillment across all categories of its customers' promotional products needs. Halo is based in Sterling, IL.
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, 2007 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.
Source: Compass Diversified Holdings