Compass Diversified Holdings entered into an agreement to acquire and consummated the acquisition of Crosman Corporation, a leading designer, manufacturer and marketer of airguns, archery products, optics and related accessories.
Headquartered in East Bloomfield, NY, Crosman serves over 425 customers worldwide, including mass merchants, sporting goods retailers, online channels and distributors serving smaller specialty stores and international markets. The company’s diversified product portfolio includes the widely known Crosman, Benjamin and CenterPoint brands. For the trailing twelve months ended April 30, 2017, Crosman reported net revenue of approximately $118 million.
The acquisition was completed for a purchase price of approximately $152 million (excluding working capital and other customary adjustments). CODI funded the purchase price through available cash on its balance sheet and a draw on its revolving credit facility. CODI’s equity ownership in Crosman as a result of this transaction is approximately 98.9 percent. Crosman’s management team invested in the transaction alongside CODI. The company previously owned a majority stake in Crosman and divested the business in 2007.
“Crosman is a market leader with iconic brands and we are pleased to add the company to our family of niche leading businesses with this accretive acquisition,” said Alan Offenberg, CEO of Compass Diversified Holdings. “Crosman’s strategic focus on the airgun and archery markets has enabled the company to generate strong and stable cash flows while entering into an attractive adjacent market with compelling growth prospects. We are excited to draw on our past ownership of Crosman and deep experience with outdoor branded consumer product companies, and look forward to working with the company’s strong management team to solidify Crosman’s leading position in airguns and further penetrate the archery market.”
Offenberg added, “This transaction, our second platform acquisition in the last nine months, brings the current number of leading niche industrial and branded consumer businesses we own to nine. We expect the acquisition to provide approximately $0.12 per share of cash flow accretion to CODI on a full year basis. Moving ahead, we will continue to take advantage of our financial strength and liquidity to pursue attractive businesses with a reason to exist that will generate growing cash flows and further enhance our ability to provide sizeable cash distributions to our shareholders.”
CODI owns and manages a diverse family of established North American middle market businesses. Each of its current subsidiaries is a leader in its niche market. Businesses owned include 5.11, Advanced Circuits, Arnold Magnetic Technologies, Clean Earth, Ergobaby, Liberty Safe, Manitoba Harvest and Sterno Products.