{"id":514456,"date":"2021-07-19T08:33:29","date_gmt":"2021-07-19T12:33:29","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/compass-diversified-announces-sale-of-liberty-safe\/"},"modified":"2021-07-19T08:33:29","modified_gmt":"2021-07-19T12:33:29","slug":"compass-diversified-announces-sale-of-liberty-safe","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/compass-diversified-announces-sale-of-liberty-safe\/","title":{"rendered":"Compass Diversified Announces Sale of Liberty Safe"},"content":{"rendered":"
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WESTPORT, Conn., July 19, 2021 (GLOBE NEWSWIRE) — Compass Diversified (NYSE: CODI) (\u201cCODI\u201d), an owner of leading middle market businesses, today announced it has entered into a definitive agreement to sell its majority owned subsidiary, Liberty Safe Holding Corporation, the parent company of Liberty Safe and Security Products, Inc. (“Liberty” or \u201cthe Company\u201d), to an affiliate of Monomoy Capital Partners (\u201cMonomoy\u201d), a middle market private investment firm which invests in the debt and equity of manufacturing, distribution and consumer product businesses. Under the terms of the Agreement, Liberty will be sold to Monomoy for approximately $147.5 million in cash, subject to certain adjustments based on matters such as the working capital and cash and debt balances at the time of the closing.<\/p>\n

CODI expects to realize a gain on the sale of Liberty of approximately $75 million to $85 million. Net proceeds will be used for general corporate purposes and to fund the previously announced special distribution of $0.88 per common share in connection with CODI\u2019s anticipated tax reclassification which is expected to be effective later this quarter or early in the fourth quarter of this year.<\/p>\n

\u201cWe are incredibly proud of Liberty\u2019s status today as a leading brand, with a loyal consumer base and extensive dealer network,\u201d said Elias Sabo, CEO of Compass Diversified Holdings. \u201cTogether with the talented Liberty team, we have made transformative investments to scale the business through expanded manufacturing capabilities and a unique e-commerce infrastructure that we believe will position the Company for continued success. This outcome is a testament to both the forward-looking vision of the Liberty team and CODI\u2019s permanent capital structure, which allows us the flexibility to take a long-term approach to value creation within our subsidiaries.\u201d<\/p>\n

Stephen Allred, CEO of Liberty Safe and Security Products, said, \u201cToday\u2019s announcement is the culmination of a journey that began in 2010. With CODI\u2019s partnership, Liberty is now an industry leading, national brand for American-made safes with world-class manufacturing capabilities. We believe Liberty is well positioned for long term success as it continues to serve its customers with the highest quality and most reliable products in the industry, and we thank CODI for their support over the past decade.\u201d<\/p>\n

The closing of this transaction is subject to customary terms and conditions, including regulatory approval, and is expected to occur by the end of August 2021.<\/p>\n

Lincoln International LLC acted as financial advisor and Squire Patton Boggs (US) LLP acted as legal counsel to CODI. Ropes & Gray LLP acted as legal advisor to Monomoy.<\/p>\n

\n About Compass Diversified (\u201cCODI\u201d)<\/strong>\n <\/p>\n

CODI owns and manages a diverse set of highly defensible North American middle market businesses. Each of its current subsidiaries is a leader in its niche market.<\/p>\n

Leveraging its permanent capital base, long-term disciplined approach and actionable expertise, CODI maintains controlling ownership interests in each of its subsidiaries, maximizing its ability to impact long-term cash flow generation and value creation. CODI provides both debt and equity capital for its subsidiaries, contributing to their financial and operating flexibility. CODI utilizes the cash flows generated by its subsidiaries to invest in its long-term growth and has consistently generated strong returns through its culture of transparency, alignment and accountability.<\/p>\n

Our ten majority-owned subsidiaries are engaged in the following lines of business:<\/p>\n