DivestmentMay 4, 2026, 07:17 AM
Compass Diversified Completes Sterno Food Service Sale for $280M
AI Summary
Compass Diversified announced the completion of the sale of its majority-owned subsidiary SternoCandleLamp Holdings, Inc.'s food service business to Archer Foodservice Partners. The transaction, based on an enterprise value of $292.5 million, resulted in CODI receiving approximately $280 million in proceeds at closing. The company plans to use these funds to repay outstanding senior secured debt, aiming to reduce its senior secured net leverage ratio to below 1.0x by June 30, 2026, and avoid associated fees. CEO Elias Sabo highlighted the sale as a meaningful step in deleveraging efforts at a favorable valuation.
Key Highlights
- Compass Diversified completed the sale of Sterno's food service business on May 1, 2026.
- The sale was based on an enterprise value of $292.5 million.
- CODI received approximately $280 million in total proceeds at closing.
- Net proceeds will be used to repay outstanding senior secured debt.
- Company expects to reduce senior secured net leverage ratio to below 1.0x by June 30, 2026.
- The divestment aims to avoid fees tied to excess leverage under its senior secured indebtedness.