Advanced Circuits Buys Circuit Express

Advanced Circuits, a portfolio company of Compass Diversified Holdings, has acquired Circuit Express Inc., a Tempe, Ariz.-based prototype and low-volume manufacturer of rigid printed circuit boards. No financial terms were disclosed.


Compass Diversified Holdings (Nasdaq: CODI) (“CODI” or the “Company”), an owner of leading middle market businesses, announced today that its subsidiary, Advanced Circuits, has acquired Circuit Express, Inc. (CEI) for a purchase price of $15.6 million.

Based in Tempe, Arizona and founded in 1987, CEI focuses on quick-turn manufacturing of prototype and low-volume quantities of rigid printed circuit boards (PCBs), primarily for aerospace and defense related customers. While its standard production lead time is five days, CEI specializes in expedited delivery in as fast as 24 hours. The company’s three facilities total 35,000 square feet, and are designed for the sole purpose of producing PCBs. For the year ended December 31, 2009, CEI reported revenue of approximately $16.4 million. The purchase price was funded largely in cash from CODI’s balance sheet.

Commenting on the transaction, Joe Massoud, CEO of Compass Diversified Holdings, said, “We are pleased to announce the strategic acquisition of Circuit Express. With this transaction, we have expanded ACI’s core capabilities to include advanced aerospace and defense driven products, while strengthening its leadership position in the quick-turn manufacturing niche. We expect this acquisition to be highly accretive to cash flows. Going forward, we expect to capitalize on our financial strength by consummating attractive acquisitions of new platform businesses or further add-ons to our existing subsidiaries.”

According to John Yacoub, President and CEO of Advanced Circuits, “The addition of CEI to the ACI family strategically expands our presence in an attractive sector and strengthens our ability to produce quick-turn, high-technology PCBs. We intend to take advantage of CEI’s highly talented employee base and state-of-the-art facilities to more effectively utilize our operating capacity and drive future growth.”

Travis Bice, President of CEI, will continue to serve in a management role in Tempe, Arizona. “We are excited to merge with Advanced Circuits,” said Mr. Bice. “The company has established itself as a leader in quick-turn and prototype PCB manufacturing services, and we believe our business combination provides important long-term benefits for our employees, customers and other key stakeholders.”

About Compass Diversified Holdings (“CODI”)

Compass Diversified Holdings (“CODI”) was formed to acquire and manage a group of middle market businesses that are headquartered in North America. Its subsidiaries are a diverse group of businesses with highly defensible market positions.

CODI’s structure involves acquisition of controlling ownership interests in its subsidiaries in order to maximize its ability to impact each subsidiary’s performance. The Company provides both debt and equity capital for its subsidiaries, contributing to their financial and operating flexibility. CODI’s model involves discipline in identifying and valuing businesses, proactive engagement with the management teams of the companies it acquires and the monetization of its subsidiaries when it believes that doing so will maximize shareholder value. The Company seeks to provide an extraordinarily high level of transparency in financial reporting and governance processes for the benefit of its shareholders. CODI currently has six subsidiaries operating in distinct market niches. The cash flows generated by these businesses are utilized in pursuit of CODI’s dual objectives of investing in the long-term growth of the Company and making distributions of cash to its shareholders.

Our Subsidiary Businesses

Each of our companies is a leader in their respective market niche.

Based in Ecru, MS, American Furniture Manufacturing is a manufacturer of promotionally priced upholstered furniture. Visit

Based in Coral Springs, FL, Anodyne Medical Device is a designer manufacturer of medical support surfaces and other wound treatment devices. Visit

Based in Aurora, CO, Advanced Circuits is a manufacturer of quick-turn, prototype and production rigid printed circuit boards (“PCBs”). Visit

Based in Watsonville, CA, Fox Racing Shox is a designer and manufacturer of suspension products for mountain bikes and powered off-road vehicles. Visit

Based in Sterling, IL, Halo Lee Wayne is a one-stop resource for design, sourcing and fulfillment of promotional products. Visit

Based in Cincinnati, OH, Staffmark is a provider of temporary staffing services, operating approximately 300 locations in 29 states. Visit

To find out more about Compass Diversified Holdings, please visit

This press release may contain certain forward-looking statements, including statements with regard to the future performance of the Company. 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 Securities and Exchange Commission for the year ended December 31, 2009 and other filings with the Securities and Exchange Commission. CODI undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

A copy of this press release, and of past press releases, is available on Compass Diversified Holdings’ website located at