Compass Diversified Holdings acquired Candle Lamp Company, LLC. Oct. 10 for eight times trailing 12 months EBITA in its first acquisition of a consumer brand since divesting control of Fox Holding Corp. earlier this year.
The company, which has done business as SternoCandleLamp since a 2012 merger between the then 119-year-old Sterno and 30-year-old Candle Lamp, produces a line of wick and gel chafing fuels, butane stoves and accessories, liquid and traditional wax candles, catering equipment and lamps. While it earns most its revenues from the food service industry, SternoCandleLamp does offer a line of consumer products, including Sterno-branded fuel canisters, stoves and fire starters for tailgating, car camping and other outdoor use.
The purchase price of $163 million was based on a total enterprise value of $161.5 million and included approximately $1.7 million of cash and working capital adjustments. Corona, CA-based SternoCandleLamp generated revenue of approximately $133.6 million in sales calendar 2013 and $20.0 million of EBITDA for the 12 months ended Sept. 30, 2014.
In addition to its equity investment, CODI provided loans totaling approximately $91.6 million to SternoCandleLamp as part of the transaction. Don Hinshaw will continue to serve as president and CEO of the company.
CODI’s is a publicly traded company that specializes in acquiring, growing and selling middle market North American companies. It’s consumer products holdings include majority stakes of CamelBak Products, ErgoBaby and Liberty Safe and a 41 percent stake in Fox Holding Corp.