Compass Diversified (CODI), parent of the 5.11 Tactical, Boa, Lugano, Primaloft, and Velocity Outdoor brands, has entered into a definitive agreement and completion of the sale of its majority-owned subsidiary, The Ergo Baby Carrier, Inc. (Ergobaby), to Highlander Partners, L.P., a Dallas, TX-based private investment firm.
CODI did not disclose the terms of the deal; however, proceeds from the transaction will reportedly be used to pay down debt and for general corporate purposes.
“We are proud of Ergobaby’s position as a global leader in premium juvenile products and are grateful for Jason and the team’s contributions over the years,” said Compass Diversified CEO Elias Sabo. “Looking ahead, we plan to use the proceeds from this sale to continue to acquire and manage innovative and disruptive brands, positioning our business for continued success and driving long-term shareholder value.”
Jason Frame, CEO of Ergobaby, commented: “We have been fortunate to work with the CODI team and thank them for their steadfast support. We are excited for our next chapter and feel we are well-positioned for continued success with Highlander.”
Highlander Partners said in a media release that the company’s “comprehensive product line includes ergonomically designed baby carriers, wraps, strollers, bouncers, highchairs, maternity, and postpartum support bands and apparel, as well as feeding, sleep and nursing accessories.” The company designs products to support parents and babies through all pregnancy and early development stages.
Ergobaby’s brand portfolio includes the following three product collections:
- Ergobaby, the flagship baby carrier brand,
- Tula, functional carriers featuring prints, inclusive sizing, and “artisan craftsmanship,” and
- Belly Bandit, a solutions-focused maternity and postpartum brand.
Jeff L. Hull, president and CEO of Highlander Partners, commented, “This acquisition further emphasizes Highlander’s focus on investing in category-leading branded consumer product companies. As the #1 baby carrier brand globally, Ergobaby has tremendous growth opportunities driven by product innovation, market expansion and increased consumer awareness. In addition, we have a strong track record of implementing a “buy and build” approach with our investments and we see significant M&A opportunities that would complement Ergobaby’s parenting solutions portfolio and business strategy to better serve its customers in the broader juvenile products market.”
Ergobaby reports a global workforce of 170 employees, reaching customers in over 1,800 retail stores, with distribution in over 75 countries.
Robert W. Baird & Co. acted as exclusive financial advisor, and Gibson, Dunn & Crutcher LLP acted as legal counsel to CODI. Katten Muchin Rosenman, LLP acted as legal counsel to Highlander.
Image courtesy Ergobaby
