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Compass Diversified Holdings Buys CamelBak

Compass Diversified Holdings has acquired a controlling stake in CamelBack Products, paying $257.5 million. The price is based on a total enterprise value of $245.0 million and included $12.5 million of cash and working capital adjustments, the company said. CamelBak makes hands-free hydration systems.

Compass Diversified Holdings (CODI) announced that it acquired a controlling interest in CamelBak Products on August 24. CamelBak invented the hands-free hydration category and is the global leader in personal hydration gear.

The purchase price of $257.5 million for the membership interests of CamelBak is based on a total enterprise value of $245.0 million and included $12.5 million of cash and working capital adjustments.

Alan Offenberg, CEO of CODI, said, “We are pleased to further expand our family of niche market leaders with the acquisition of CamelBak. This company possesses the critical characteristics that we seek in all of our subsidiaries, including market leadership, strong operating history and cash flow levels, proven management and compelling growth opportunities. CamelBak is an industry pioneer with strong brand recognition as the premier innovator of personal hydration products, offering superior performance as well as important health and environmental benefits. We expect to capitalize on the company’s strong market position, as well as favorable macro trends, including the growing demand for improved everyday hydration. We believe CamelBak will continue to evolve its leading product and innovation platform and strengthen its relationships with top retailers and the military, thereby increasing consumer penetration levels globally. We look forward to working with CamelBak to continue to accelerate their growth.”

Compass Diversified has a potential upside of 33.5% based on a current price of $12.73 and an average consensus analyst price target of $17.

Compass Diversified is currently below its 50-day moving average (MA) of $15.11 and below its 200-day MA of $16.07.

In the last five trading sessions, the 50-day MA has fallen 1.19% while the 200-day MA has slid 0.5%.

Compass Diversified Holdings, through subsidiaries, offers a wide range of products and services. The Company’s products and services include coating systems, manufacturing industrial drying and cooling equipment, upholstered stationary and motion furniture, medical support surfaces, patient positioning devices, printed circuit boards, promotional products, and staffing services.