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Stock Market & Financial Investment News

News Breaks
August 7, 2014
16:58 EDTCODICompass Diversified acquires Clean Earth Holdings for $243M
Compass Diversified Holdings announced that on August 7 it entered into an agreement to acquire Clean Earth Holdings. The acquisition is expected to close by the end of August. Clean Earth provides environmental services for a variety of contaminated materials including soils, dredged material, hazardous waste and drill cuttings. For the year ended December 31, 2013, Clean Earth reported revenue of approximately $155.9M. The purchase price for Clean Earth will be based on a total enterprise value of $243M and will also include cash and working capital adjustments upon closing. Clean Earth generated approximately $32M of EBITDA for the last twelve months ending June 30, 2014. In addition, Clean Earth incurs between approximately $4M-$5M in annual maintenance capital expenditures. CEO Alan Offenberg said, "This attractive platform acquisition, which will increase the current number of businesses we own to eight upon closing, in addition to a 41% ownership interest in FOX, is expected to provide approximately 28c-32c per share of cash flow accretion on a full year basis."
News For CODI From The Last 14 Days
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October 13, 2014
08:35 EDTCODICompass Diversified acquires SternoCandleLamp for $163M
Compass Diversified announced that on October 10, 2014, it entered into an agreement to acquire and consummated the acquisition of Candle Lamp Company, a manufacturer and marketer of portable food warming fuel and creative table lighting solutions for the foodservice industry. SternoCandleLamp's product line includes wick and gel chafing fuels, butane stoves and accessories, liquid and traditional wax candles, catering equipment and lamps. For the year ended December 31, 2013, SternoCandleLamp reported net revenue of approximately $133.6M. The purchase price for SternoCandleLamp of $163M was based on a total enterprise value of $161.5M and included approximately $1.7M of cash and working capital adjustments. SternoCandleLamp generated approximately $20M of EBITDA for the last twelve months ending September 30, 2014. Acquisition related costs were approximately $2.7M. CODI funded the acquisition through a draw of $166M on its revolving credit facility. On a primary basis, CODI will initially own all of the common equity ownership in SternoCandleLamp. In addition to its equity investment in SternoCandleLamp, CODI provided loans totaling approximately $91.6M to SternoCandleLamp as part of the transaction. CEO Alan Offenberg said, "This platform acquisition, our second in 2014, is expected to provide approximately 20c per share of cash flow accretion on a full year basis and, combined with our acquisition of Clean Earth Holdings in August 2014, has significantly strengthened our earnings power. Going forward, we will continue to enter into additional accretive acquisitions of leading businesses aimed at creating long-term shareholder value."

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