Compass Diversified (CODI), which owns Velocity Outdoor, BOA, Marucci, Primaloft, 5.11 and others in the active lifestyle space, entered into a definitive agreement to sell its majority-owned subsidiary, Compass AC Holdings, Inc., the parent company of Advanced Circuits, Inc., to APCT, Inc., a manufacturer of printed circuit boards and the portfolio company of Industrial Growth Partners.
Under the terms of the Agreement, Advanced Circuits will be sold to APCT for an enterprise value of $220 million cash at close, subject to certain working capital and other adjustments. CODI expects to realize a pre-tax gain on the sale of Advanced Circuits of between $100 million to $110 million. Net proceeds will pay off outstanding revolver borrowings.
The closing is subject to customary terms and conditions, including regulatory approval, and is expected to occur in February 2023.
Jefferies, LLC acted as the exclusive financial advisor, and Ropes & Gray, LLP acted as legal counsel to CODI. Kirkland & Ellis, LLP was legal counsel to APCT.
