Compass Diversified Holdings has acquired Liberty Safe and Security Products, Inc. According to published reports, CODI paid approximately $70 million to purchase the company, funding the acquisition with drawings under its revolving credit facility. CODI paid approximately $1.5 million in expenses associated with the transaction and its initial ownership is reportedly about 96%.
CODI CEO Joe Massoud said Liberty represents an ideal addition to our family, noting that the manufacturer of home and gun safes possesses strong industry positioning, experienced management, stable cash flows and favorable macro trends. Demand among avid shooting sports enthusiasts remains healthy and we expect to benefit from increasing awareness and the need for safe storage of firearms, Massoud said.
we believe that there is a largely untapped market for premium home safes that represents an important growth avenue for the company going forward.
Massoud added that he expects the acquisition to immediately provide shareholders with 10 cents-15 cents per share of cash flow accretion on the full year basis. Furthermore, Massoud added, we are optimistic that in the current environment, we will have additional opportunities to acquire businesses attractively on behalf of our shareholders.
Compass Diversified Holdings businesses include American Furniture Manufacturing, Anodyne Medical Device, Advanced Circuits, Fox Racing Shox, Halo Lee Wayne, and Staffmark.
Liberty produces a wide range of home and gun safe models and is marketed under the Liberty brands, as well as a portfolio of licensed and private label brands, including Remington, Cabelas and John Deere.
Liberty reported revenue of $73.8 million for the year ended December 31.
