Halo Branded Solutions Sold To Investment Firm
Breaking News Alert
May 2, 2012
As first reported in a Breaking News Alert, Compass
Diversified Holdings has sold Counselor Top 40 distributor Halo Branded
Solutions (asi/356000) to Candlelight Investment Holdings for a total enterprise
value of $76.5 million. Candlelight is a single-purpose investment vehicle
formed as a partnership between PSP Capital Partners LLC, a Chicago-based
private investment firm, and Halo management. "We are very excited about
our new partnership with PSP," Marc Simon, Halo's CEO,
told Counselor in an exclusive interview. "The advantage now is that this
investor has a longer time horizon, and they're very willing to invest in
improvements even if there isn't an immediate payoff."
Simon said there will be no management changes as a result
of this deal, as senior management at Halo is investing in the company along
For Compass (NASDAQ: CODI), which purchased Halo in 2007 for
$62.5 million, the deal represent an opportunity to improve its own financial
positioning. "The divestiture of Halo allows us to increase our liquidity
and supports our efforts to maximize value for our owners," said Alan Offenberg, Compass CEO,
in a statement. "We enjoyed working with Halo over the past five years and
wish the company continued success."
In its search for a new owner, Simon said Halo first began
interviewing investment firms last June. It signed a letter of intent with PSP
in January and finalized the deal between PSP and Compass earlier this week.
Troy Noard, PSP managing director, said his company
is looking forward to its new relationship. "We are delighted to partner
with Marc and his management team to continue to build Halo," Noard said. "We are impressed with Halo's leadership
position in an industry that is positioned for strong growth. We are eager to
invest in and build upon Halo's success."
Halo Branded Solutions reported 2011 North American ad
specialty sales of $170.9 million, an increase of 7% over 2010.