Compass Diversified (CODI) has entered into a definitive agreement to acquire the equity of PrimaLoft Technologies Holdings, Inc., the parent company of PrimaLoft Inc., for an enterprise value of $530 million.
The seller was Victor Capital Partners.

PrimaLoft provides synthetic insulation and materials used primarily in consumer outerwear and accessories with over 90 global patents.

Based in Latham, NY, PrimaLoft was established in 1983 by Albany International Corporation in response to a U.S. Army request to develop synthetic insulation for soldiers that replicated the warmth and weight characteristics of traditional goose down but remains warm when wet.

In addition to maintaining performance in wet conditions, the portfolio of PrimaLoft synthetic insulations offers products that can mimic the natural properties of down but provide the freedom to design apparel ranging from puffers to lightweight performance gear. PrimaLoft also offers sustainability characteristics when using recycled, low-carbon inputs in its production.

PrimaLoft works with over 950 brand partners, including Patagonia, Nike, Stio, La Sportiva, Polo Ralph Lauren, Helly Hansen, Marmot, Moncler, and Canada Goose, within the outdoor industry.

“PrimaLoft has all the attributes we look for in an acquisition and, once closed, will add to CODI’s track record of acquiring industry-leading, innovative businesses with strong competitive advantages,” said Elias Sabo, CEO, Compass Diversified. “PrimaLoft is a market leader and possesses significant intellectual property, operates in a large, growing addressable market, and has a world-class management team led by Mike Joyce. In addition, PrimaLoft is a high growth and high free cash flow generating business that operates at the forefront of sustainability and is fully aligned with CODI’s mission of conducting our business in a responsibly and ethical manner while delivering superior investment results. We’re excited to support PrimaLoft’s next phase of growth.”

Mike Joyce, president and CEO of PrimaLoft, said: “I am incredibly proud of PrimaLoft’s success with Victor Capital Partners and am thrilled to be partnering with CODI, who shares our commitment to building a sustainable future through innovation. We believe PrimaLoft is well-positioned to continue its purpose to unleash the full potential of people, products and planet as we address the need for sustainable product innovations in the apparel industry, and beyond. We have built enduring partnerships with key customers through our ability to consistently deliver innovative products that elevate sustainability and performance, and we look forward to leveraging CODI’s world-class platform to continue to push the synthetic materials market forward.”

The acquisition is expected to close in July, subject to customary closing conditions
William Blair & Company served as lead financial advisor to PrimaLoft, a portfolio company of Victor Capital Partners, along with Baird. Jefferies LLC acted the exclusive financial advisor to Compass Diversified.
Following the close of the transaction, PrimaLoft will continue to be led by its current leadership team.

Victor Capital acquired a majority interest in PrimaLoft in 2017 in partnership with the management team, which maintained a significant investment in the business. Victor Capital and management collaborated to execute a growth plan that expanded the reach, size and value of the company. PrimaLoft employees worldwide will receive proceeds from the sale of its “PrimaLoft Prosperity Plan,” which Victor Capital and management put in place to ensure all employees would benefit financially from the company’s success.

Photo courtesy PrimaLoft