Compass Diversified Holdings on Monday announced that it has entered into a definitive agreement to acquire Baton Rouge, LA-based baseball equipment and apparel maker Marucci Sports LLC for $200 million.
Marucci Sports was founded in 2009 by two former professional baseball players and an assistant White House Press Secretary. Over the past decade, hundreds of Big League players have chosen Marucci products, making Marucci one of the most popular bats in baseball.
While continuing to increase market share in wood bats, Marucci has built on its devoted brand following by expanding the product portfolio to include a full suite of baseball equipment and apparel. The company achieved approximately $14 – $15 million of adjusted EBITDA for the trailing 12-month period ending December 31, 2019.
“We are pleased to add Marucci Sports to our portfolio of niche market leading brands,” said Elias Sabo, CEO of Compass Group Diversified Holdings LLC. “With an unwavering commitment to quality craftsmanship and focus on addressing players’ evolving needs, Marucci has firmly established itself as a leader in baseball equipment, and we are confident that together we will further expand Marucci’s best-in-class product portfolio, penetrate new markets, and increase the brand’s presence internationally.”
Sabo continued: “Leveraging CODI’s deep sector expertise and proven track record of building businesses for the long term, as well as Marucci’s loyal brand following, we believe the Company is poised for continued success in the sports equipment space. As their roster of impressive customers continues to grow, we are delighted to partner with Marucci’s talented team to build on the success they have achieved since the Company’s founding and further accelerate their growth and expansion in the years to come.”
“When we launched Marucci Sports, our goal was to offer all players, regardless of age or level, big-league quality products that they wanted and needed to be successful,” said Kurt Ainsworth, co-founder and CEO of Marucci. “This partnership with CODI represents the beginning of a long-term relationship that recognizes the tremendous efforts and hard work of the Marucci team and demonstrates the high growth potential of our impressive suite of products. We look forward to working with Elias and the CODI team as we leverage their substantial expertise in the branded consumer products space and permanent capital base to achieve our shared objectives.”
Marucci Sports has 230 employees across its brands. Following the close of the transaction, Marucci will continue to be led by Ainsworth and its current leadership team. The company will remain headquartered in Baton Rouge.
Under the terms of the agreement, CODI will acquire a substantial tax asset associated with the structuring of the transaction. The acquisition is expected to close within the next 45 days, subject to customary closing conditions. Additional information on the acquisition will be available in CODI’s current report on Form 8-K that will be filed with the Securities and Exchange Commission .
Jefferies LLC served as financial adviser to Marucci.