WESTPORT, Conn., June 1, 2016 /PRNewswire/ -- Compass Diversified Holdings (NYSE: CODI) ("CODI" or the "Company"), an owner of leading middle market businesses, announced today that its subsidiary, Clean Earth, Inc. ("Clean Earth"), has acquired EWS Alabama, Inc. ("EWS").
Headquartered in Glencoe, Alabama, EWS has utilized advanced technologies to provide a wide range of hazardous and non-hazardous waste management services. EWS serves approximately 250 customers in eleven states across the country from its company-owned, 65,000 square foot fully permitted hazardous waste RCRA Part B facility. Situated on 42 acres, the facility is well equipped to handle various waste streams and to support increased capacity. For the trailing twelve months ended April 30, 2016, EWS reported net revenue of approximately $12 million. CODI funded the purchase price through a draw on its revolving credit facility.
Commenting on the transaction, Alan Offenberg, CEO of CODI, said, "Following our acquisition of Phoenix Soil in April, we are pleased to make our third accretive add-on acquisition since acquiring Clean Earth in 2014. The addition of EWS to Clean Earth will strengthen the company's waste management capabilities and expand its geographic presence in the Southeast market, while also creating solid cross-selling opportunities with existing customers. Going forward, we remain focused on using CODI's balance sheet strength to pursue further add-on and platform acquisitions of niche leading businesses that will drive cash flow and create long-term value for our shareholders."
Chris Dods, CEO of Clean Earth, commented, "Since 1996, EWS has been a leader in providing waste management services. Our combined geographic footprint will open up new markets for Clean Earth, expanding our customer base and enhancing our growth prospects. In addition, EWS's regulatory permits and extensive processing capabilities will enable us to recycle carbon black, utilize fuel blending, process medical waste and recycle new forms of non-hazardous waste, opening up new opportunities to service our existing regional customers as well as acquire new national customers."
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 eight majority-owned subsidiaries are engaged in the following lines of business:
- The manufacture of quick-turn, small-run and production rigid printed circuit boards (Advanced Circuits);
- 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);
- 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);
- The manufacture and marketing of branded, hemp-based food products (Manitoba Harvest); and
- The manufacture and marketing of portable food warming fuels and creative ambience solutions for the hospitality and consumer markets (Sterno Products).
In addition, we own approximately 33% 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.
To find out more about Compass Diversified Holdings, please visit www.compassdiversifiedholdings.com.
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, 2015 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