WESTPORT, Conn., Dec. 15, 2014 /PRNewswire/ -- Compass Diversified Holdings (NYSE: CODI) ("CODI"), an owner of leading middle market businesses, announced today that its subsidiary, Clean Earth, Inc. ("Clean Earth"), has acquired AES Environmental LLC ("AES") for a purchase price of $16.6 million.
AES provides environmental services, managing hazardous and non-hazardous waste from off-site generators. AES has two fully permitted hazardous waste facilities located in Calvert City, Kentucky and Morgantown, West Virginia, serving industrial and government customers across the region. AES also provides transportation and recycling services. For the trailing twelve months ended October 31, 2014, AES reported net revenue of approximately $24.8 million. CODI funded the purchase price through available cash on its balance sheet and a draw on its revolving credit facility.
Commenting on the transaction, Alan Offenberg, CEO of CODI, said, "Following our acquisition of Clean Earth in August, we are excited to enhance its growth potential with the accretive add-on acquisition of AES. This attractive business will assist Clean Earth in providing environmental services to a larger customer base by penetrating new markets across the Midwest and Mid-Atlantic regions. Going forward, we remain focused on using our strong balance sheet and financial flexibility to take advantage of other market opportunities by pursuing quality platform companies as well as additional add-ons."
Chris Dods, CEO of Clean Earth, stated, "AES enhances our future prospects. This acquisition supports our growth objectives by increasing our geographic footprint into new and strategic locations while introducing new offerings to our capabilities. We plan on using our operational expertise to drive a seamless integration process and remain committed to achieve the highest environmental and safety standards for Clean Earth."
About Compass Diversified Holdings ("CODI")
CODI owns and manages a diverse family of established North American middle market businesses. Each of its current subsidiaries is a leader in its niche market.
CODI maintains controlling ownership interests in each of its subsidiaries in order to maximize its ability to impact long term cash flow generation and value. The Company 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 the long-term growth of the Company and to make cash distributions to its shareholders.
Our nine majority-owned subsidiaries are engaged in the following lines of business:
- The manufacture of quick-turn, prototype and production rigid printed circuit boards (Advanced Circuits);
- The design and manufacture of promotionally priced upholstered furniture (American Furniture Manufacturing);
- The design and manufacture of medical therapeutic support surfaces and other wound treatment devices (Anodyne Medical Device, also doing business and known as Tridien Medical);
- The manufacture of engineered magnetic solutions for a wide range of specialty applications and end-markets (Arnold Magnetic Technologies);
- The design and manufacture of personal hydration products for outdoor, recreation and military use (CamelBak Products);
- Environmental services for a variety of contaminated materials including soils, dredged material, hazardous waste and drill cuttings (Clean Earth);
- The design and marketing of wearable baby carriers, strollers and related products (Ergobaby);
- The design and manufacture of premium home and gun safes (Liberty Safe); and
- The manufacture and marketing of portable food warming fuel and creative table lighting solutions for the foodservice industry (SternoCandleLamp).
In addition, we own approximately 41% of the common stock of Fox Factory Holding Corp. ("FOX", Nasdaq: FOXF), a former subsidiary business that completed its initial public offering in August 2013. FOX designs and manufactures high-performance suspension products primarily for mountain bikes, side-by-side vehicles, on-road and off-road vehicles and trucks, all-terrain vehicles, snowmobiles, specialty vehicles and applications, and motorcycles.
This press release may contain certain forward-looking statements, including statements with regard to the future performance of CODI. Words such as "believes," "expects," "projects," and "future" or similar expressions, are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements, and some of these factors are enumerated in the risk factor discussion in the Form 10-K filed by CODI with the SEC for the year ended December 31, 2013, the Form 10-Q filed by CODI with the SEC for the quarter ended September 30, 2014 and other filings with the SEC. CODI undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/compass-diversified-holdings-subsidiary-clean-earth-acquires-aes-environmental-300009256.html
SOURCE Compass Diversified Holdings