Compass Diversified (CODI), the parent of BOA, Primaloft, 5.11, and Velocity Outdoor, entered into a definitive agreement to sell the food service business of its majority-owned subsidiary, SternoCandleLamp Holdings, Inc., to Archer Foodservice Partners for $292.5 million, thereby accelerating its deleveraging efforts.
The deal is subject to customary working capital and other adjustments.
In 2025, the business to be sold generated subsidiary adjusted EBITDA of approximately $30.3 million. This figure is reported to include certain shared overhead expenses that will remain following the transaction.
CODI reported that it will use the net proceeds from the transaction to repay outstanding debt. Following the transaction’s close and the anticipated repayment of senior secured indebtedness, CODI expects its senior secured net leverage ratio to fall below 1.0x. Following the anticipated repayment, CODI also expects to avoid fees associated with excess leverage under its senior secured indebtedness beyond June 30, 2026.
Following the transaction, CODI will retain Sterno’s home fragrance business, which will continue to operate under the Rimports name.
Sterno is part of CODI’s industrial segment.
CODI’s other subsidiaries include The Honey Pot (THP) in its consumer group and Altor and Arnold in its industrial segment.
“This transaction is a critical step in reducing leverage at CODI and reflects our commitment to taking decisive action — strategically selling businesses, rapidly deleveraging the balance sheet and addressing the gap between the market price and our intrinsic value,” said Elias Sabo, chief executive officer of CODI. “Sterno has been a valuable part of CODI for more than a decade, and this agreement reflects the quality of the business the team has built. We thank Sterno’s employees for their hard work and dedication, and we believe the business is well-positioned for continued success in its next chapter.”
Geoffrey J. Feil, chief executive officer of Sterno, added, “It has been a great privilege to lead the Sterno business. With a brand whose roots date back over 125 years, Sterno has a rich history as the most reliable source of portable heat and the clear choice for chefs, caterers, home entertainers, campers, and even those serving our country overseas during World Wars I and II. The business is stronger than ever and well-positioned for continued success. I am grateful to all of the employees for their hard work and dedication to the business. While I will miss leading Sterno, I am also excited to continue to partner with Compass Diversified and to turn my full attention to building a leader in the home fragrance and décor space with Rimports.”
The transaction is subject to customary closing conditions, including applicable regulatory approvals, and is expected to close in May 2026.
Raymond James is serving as financial advisor to CODI, and Brownstein Hyatt Farber Schreck, LLP is serving as legal counsel.
Image courtesy Sterno
