Compass Diversified (CODI), owner of Velocity Outdoor, BOA, Primaloft, 5.11, and other active lifestyle brands, reported that it had completed a private placement of approximately 3.6 million of its common shares to a mutual fund managed by Allspring Global Investments to raise $75.2 million.
The shares were sold for $21.18 per share, the proceeds of which will be used for general corporate purposes.
“We are thrilled to receive this substantial investment from Allspring,” said Elias Sabo, CEO of Compass Diversified. “This patient and long-term institutional capital aligns with our long-term strategy and will allow us to get the jump on potential acquisition opportunities in 2024 while many of our competitors are still struggling to access capital.”
Sabo added, “As the acquisition market conditions show signs of improvement, this investment strengthens our ability to grow our subsidiaries and act on new acquisition opportunities that align with our strict standards. Our aim with this capital remains unchanged: delivering strong returns to our shareholders through the management and ownership of middle market businesses—something we have consistently done in the past.”
The sale of common shares was made pursuant to a Subscription Agreement, dated December 15, 2023, by and among CODI and the mutual fund managed by Allspring.
CODI’s Branded Consumer segment includes BOA, Primaloft, 5.11, Velocity Outdoor, Ergobaby and Lugano Diamonds. The Velocity Outdoor business includes the Crosman, Benjamin, Ravin, LaserMax, CenterPoint, and King’s Camo brands in the airguns and archery space. CODI’s Niche Industrial segment includes Altor, Arnold Magnetic Technologies, and Sterno.
Photo courtesy Boa
