WESTPORT, Conn., April 18, 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"), acquired Phoenix Soil, LLC ("Phoenix Soil") on April 15, 2016.
Headquartered in Plainville, CT, Phoenix Soil provides environmental services for non-hazardous contaminated materials with a primary focus on soils. Phoenix Soil, which has processed over 3 million tons of contaminated soil since inception, recently completed its transition to a new 58,000 square foot, state-of-the-art thermal desorption facility where it can accept and treat essentially any non-hazardous contaminated soils. For the fiscal year ended December 31, 2015, Phoenix Soil reported net revenue of approximately $5 million. CODI funded the purchase price through available cash on its balance sheet.
Commenting on the transaction, Alan Offenberg, CEO of CODI, said, "Phoenix Soil represents our second accretive add-on acquisition since acquiring Clean Earth in 2014. Adding this highly complementary business will strengthen Clean Earth's soil treatment capabilities and expand its geographic footprint into New England, allowing us to reach into new markets and enhance the company's growth potential. Looking ahead, we will continue to capitalize on CODI's strong balance sheet in making attractive strategic add-on and platform acquisitions that build long-term shareholder value."
Chris Dods, CEO of Clean Earth, stated, "Since 1993, Phoenix Soil has been a pioneer in treating non-hazardous organic contaminated soil. We are excited to work with their team and build on its established industry relationships. In addition, the new, state-of-the-art facility features a more centralized location which will reduce transportation costs and help us best serve existing and new customers. The facility's improved infrastructure, layout and regulatory permits will also enable us to treat a broader range of materials."
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