Altor Solutions Inc, which is backed by Compass Diversified, has acquired Plymouth Foam LLC, a maker of protective packaging and componentry. The value of the deal was $56 million.
SCOTTSDALE, Ariz. – October 5, 2021 – Altor Solutions, Inc. (“Altor” or “Altor Solutions”), a subsidiary of Compass Diversified (NYSE: CODI) and a leading designer and manufacturer of custom protective packaging solutions and componentry, today announced that it has acquired Plymouth Foam, LLC (“Plymouth”), a manufacturer of protective packaging and componentry, for an enterprise value of $56 million, excluding customary closing adjustments.
This transaction strengthens Altor’s status as a leading provider of packaging and componentry solutions through an expanded geographic presence, the addition of capabilities in componentry design and the cold chain sector and access to a broader base of clients across a wide variety of end-markets, including food and beverage, pharmaceuticals, recreational vehicles and construction. Plymouth, headquartered in Plymouth, Wisconsin and founded in 1978, operates two manufacturing facilities in Plymouth and Gnadenhutten, Ohio. With a high-value product offering – including custom protective packaging, cold chain packaging and internal components made from expanded polystyrene and expanded polypropylene – Plymouth’s world-class engineers provide tailored solutions and design applications that Altor expects can be leveraged across its growing geographic footprint and customer base.
“This transaction builds on a period of growth and momentum that began with our rebranding to Altor Solutions earlier this year,” said James Hughes, CEO of Altor. “We believe that the acquisition of Plymouth, with its wide array of high-value, highly engineered products, further expands our business and capabilities. With access to Plymouth’s diversified client base, two well-placed manufacturing facilities, complementary expertise and talented team, we are confident we will significantly expand Altor and Plymouth’s combined reach throughout the country. We are pleased to welcome Plymouth’s impressive team and look forward to capitalizing on the strengths of both companies as we deliver the best solutions for our growing customer base.”
“Altor has capitalized on the strong market for packaging and componentry, and we believe there is tremendous potential for growth through this combination with Plymouth,” said Elias Sabo, CEO of CODI. “We are excited to leverage CODI’s permanent capital structure to make this strategic investment and help build our subsidiary’s business. With CODI’s support, Altor is able to facilitate this transaction at the right time and capitalize on evolving consumer demands to position its strong platform for growth, enhancing long-term value for CODI shareholders.”
About Altor Solutions
Headquartered in Scottsdale, AZ, Altor Solutions is a dynamic, engineering-driven company whose goal is to design and produce superior products that help customers solve their needs for Packaging, Insulation and Componentry (PIC). The company offers a wide range of materials from traditional plastics to organic and plant-based options. Founded in 1957, the company operates 16 state-of-the-art facilities across North America specializing in the production and assembly of key components utilized in protective packaging, OEM componentry and temperature-controlled containers. For more information, please visit www.altorsolutions.com.
About Compass Diversified (“CODI”)
CODI owns and manages a diverse set of highly defensible North American middle market businesses. Each of its current subsidiaries is a leader in its niche market.
Leveraging its permanent capital base, long-term disciplined approach and actionable expertise, CODI maintains controlling ownership interests in each of its subsidiaries, maximizing its ability to impact long-term cash flow generation and value creation. CODI 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 its long-term growth and has consistently generated strong returns through its culture of transparency, alignment and accountability.