Compass Diversified Acquires CamelBak
Vol. 846 
August 30, 2011

Investment firm Compass Diversified Holdings (NASDAQ: CODI), whose subsidiaries include Counselor Top 40 distributor Halo Branded Solutions (asi/356000), has purchased CamelBak Products LLC for $258 million. The deal, announced late last week, will give Compass control of 89.9% of CamelBak, with the remaining stake shared between management and one shareholder. "We are pleased to further expand our family of niche market leaders with the acquisition of CamelBak," said Alan Offenberg, CEO of Compass. "This company possesses the critical characteristics that we seek in all of our subsidiaries, including market leadership, strong operating history and cash flow levels, proven management and compelling growth opportunities."

CamelBak products, which include insulated water bottles and hydration packs, are supplied to the ad specialty market by The Allen Company (asi/34330). Using names like Motherlode, Ambush and HotShot, CamelBak also sells its packs at U.S. military bases and at retailers like sporting goods stores. "We are eager to leverage the unique strengths of CODI's financing structure and history of working with established middle market companies to build upon our track record of success in providing advanced hydration solutions for customers on a worldwide basis," said Sally McCoy, CEO of CamelBak.

California-based CamelBak, which was founded in 1989 and employs about 350 people, generated 2010 revenues of about $122 million. Compass' holdings now include a total of nine companies.