Compass Diversified Holdings (NYSE:CODI) (“CODI” or the “Company”), an owner of leading middle market businesses, announced today that its subsidiary, Velocity Outdoor Inc. (“Velocity Outdoor”), has acquired Ravin Crossbows, LLC (“Ravin”) for a purchase price of $94 million (excluding working capital, a potential earn-out payment of up to $25 million based on future financial performance and certain other adjustments upon closing).
On August 6, 2018, Crosman Corporation announced the name change of its parent entity to Velocity Outdoor to reflect the diverse product portfolio within the corporate umbrella and to highlight its strengths in the broader hunting, shooting, and outdoor markets.
Ravin joins the Velocity Outdoor portfolio of leading brands including Crosman and Benjamin Airguns, CenterPoint Archery and Optics, LaserMax, Copperhead, and GameFace Airsoft.
Headquartered in Superior, WI, Ravin Crossbows is a leading designer, manufacturer and innovator of crossbows and accessories. Ravin primarily focuses on the higher-end segment of the crossbow market and has developed significant intellectual property related to the advancement of crossbow technology, quickly establishing a reputation as a manufacturer of the industry’s most dependable, durable, accurate and technologically-advanced line of crossbows. For the trailing twelve months ended June 30, 2018, Ravin Crossbows reported net revenue of approximately $46 million. CODI funded the purchase price through a draw on its revolving credit facility.
“We are pleased to have acquired one of the most recognizable brands among crossbow enthusiasts, representing our second accretive add-on acquisition for Velocity Outdoor since acquiring the company in 2017,” stated Elias Sabo, CEO of Compass Diversified Holdings. “Consistent with the add-on acquisition of LaserMax last year, this transaction further expands Velocity Outdoor’s presence in attractive growth markets, creates new cross-selling opportunities for the company and expands its diverse portfolio of brands across retail and dealer channels. As we progress through the year, our strong financial position continues to enable us to identify and pursue acquisitions that build long-term shareholder value and support our ability to provide stable cash distributions.”
Robert Beckwith, CEO of Velocity Outdoor, commented “Ravin is a leading and trusted name in the crossbow industry known for its technologically-advanced, durable and high-end line of products. The acquisition of Ravin positions Velocity Outdoor to more fully capitalize on the sizeable crossbow market, further diversify its customer base and take advantage of the product and market expertise inside of Ravin. The addition of Ravin strengthens our existing offerings in the outdoor recreational market, and enhances Velocity Outdoor’s overall growth prospects.”
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 ten majority-owned subsidiaries are engaged in the following lines of business:
— The design and marketing of purpose-built tactical apparel and gear serving a wide range of global customers (5.11);
— The manufacture of quick-turn, small-run and production rigid printed circuit boards (Advanced Circuits);
— The manufacture of engineered magnetic solutions for a wide range of specialty applications and end-markets (Arnold Magnetic Technologies);
— 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 custom molded protective foam solutions and OEM components (Foam Fabricators);
— The design and manufacture of premium home and gun safes (Liberty Safe);
— The manufacture and marketing of branded, hemp-based food products (Manitoba Harvest);
— The manufacture and marketing of portable food warming fuels and creative ambience solutions for the hospitality and consumer markets (Sterno Products); and
— The design, manufacture and marketing of hunting, shooting, and outdoor recreational products including airguns, archery products, optics and related accessories (Velocity Outdoor).
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, 2017 and other filings with the SEC. Except as required by law, CODI undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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SOURCE Compass Diversified Holdings