Compass Diversified Holdings Inc. (CODI), which buys and sells middle-market companies, reported net income more than doubled in the second quarter thanks in large part to its investments in outdoor products companies.

CODI reported net income of $26.6 million in the quarter ended June 30 compared to $12.3 million for the quarter ended June 30, 2014. CODI's equity method of accounting for its investment in Fox Factory Holding Corp. (FOXF) accounted for $11.2 million of the gain. CODI's FOXF stock was valued at $243 million at June 30, 2015. FOXF, which makes suspension products for mountain bikes and off road power vehicles, was deconsolidated from CODI's financial statements in July 2014 after CODI spun off a portion of its stake in the company in an initial public offering.

The rest of increase in net income came from two acquisitions closed in the back half of 2014 and growth in sales of Ergobaby infant carriers, Liberty Safe gun safes, CamelBak hydration products and products made by three other businesses CODI has owned for at least a year. Results of each business were not available at press time.

The results do not include profits from CODI's sale of CamelBak Product Inc., which occurred after the quarter ended.  CODI expects to record a gain of between $150 million and $170 million from the sale of CamelBak in the current quarter.

CODI ended the second quarter with approximately $25.4 million in cash and cash equivalents, $322 million outstanding on its term loan facility and $189 million of borrowings under its revolving credit facility. The company has no significant debt maturities until 2019 and had net borrowing availability of approximately $206 million at June 30, 2015 under its revolving credit facility.  Following its sale of CamelBak and after closing on a pending acquisition, CODI expects to have no outstanding borrowings under its $400 million revolving credit facility.