Compass Diversified-Backed Altor Solutions to Acquire Lifoam Industries
Altor Solutions, a subsidiary of Compass Diversified (NYSE: CODI), has announced its agreement to acquire Lifoam Industries, for $137 million in cash. Lifoam, a leading manufacturer of temperature-controlled packaging products, will expand Altor's presence in the cold-chain packaging sector and diversify its customer base. The acquisition brings significant synergies, including seven manufacturing locations across the U.S. and advanced engineering capabilities.
This strategic move aligns with Altor's long-term growth strategy, enhancing its product offerings and geographic coverage. The deal is expected to close in September 2024, subject to customary conditions. Compass Diversified's CEO, Elias Sabo, emphasized the acquisition's potential to generate long-term value for CODI stakeholders through expanded capabilities and innovation in environmentally friendly measures.
Altor Solutions, una filiale di Compass Diversified (NYSE: CODI), ha annunciato di aver raggiunto un accordo per acquisire Lifoam Industries, per un totale di 137 milioni di dollari in contante. Lifoam, un leader nella produzione di prodotti per imballaggio a temperatura controllata, amplierà la presenza di Altor nel settore dell'imballaggio a catena del freddo e diversificherà la sua base clienti. L'acquisizione porta con sé sinergie significative, inclusi sette stabilimenti di produzione negli Stati Uniti e avanzate capacità ingegneristiche.
Questa mossa strategica è in linea con la strategia di crescita a lungo termine di Altor, migliorando le sue offerte di prodotti e copertura geografica. L'affare dovrebbe chiudersi entro settembre 2024, subordinato alle condizioni consuete. Il CEO di Compass Diversified, Elias Sabo, ha enfatizzato il potenziale dell'acquisizione di generare valore a lungo termine per gli stakeholder di CODI attraverso capacità espanse e innovazioni in misure ecologiche.
Altor Solutions, una subsidiaria de Compass Diversified (NYSE: CODI), ha anunciado su acuerdo para adquirir Lifoam Industries, por un total de 137 millones de dólares en efectivo. Lifoam, un fabricante líder de productos de empaque controlados por temperatura, ampliará la presencia de Altor en el sector de empaque de cadena de frío y diversificará su base de clientes. La adquisición trae consigo sinergias significativas, incluyendo siete ubicaciones de fabricación en EE. UU. y capacidades de ingeniería avanzadas.
Este movimiento estratégico está alineado con la estrategia de crecimiento a largo plazo de Altor, mejorando sus ofertas de productos y su cobertura geográfica. Se espera que el trato se cierre en septiembre de 2024, sujeto a condiciones habituales. El CEO de Compass Diversified, Elias Sabo, enfatizó el potencial de la adquisición para generar valor a largo plazo para los interesados de CODI mediante capacidades expandidas e innovación en medidas sostenibles.
알토르 솔루션(Altor Solutions)은 컴파스 다이버시파이드(Compass Diversified; NYSE: CODI)의 자회사로, 리포암 산업(Lifoam Industries)을 1억 3,700만 달러에 현금으로 인수하기로 합의했다고 발표했습니다. 온도 조절 포장 제품의 선두 제조업체인 리포암은 알토르의 콜드체인 포장 부문의 입지를 확대하고 고객 기반을 다양화할 것입니다. 이번 인수는 미국 전역의 7개 제조 시설과 첨단 엔지니어링 역량을 포함하여 상당한 시너지를 가져옵니다.
이 전략적 결정은 알토르의 장기 성장 전략과 일치하며, 제품 제공과 지리적 범위를 향상시킵니다. 거래는 2024년 9월에 마무리될 것으로 예상되며, 통상적인 조건이 적용됩니다. 컴파스 다이버시파이드의 CEO인 엘리야스 사보(Elias Sabo)는 인수가 CODI 이해관계자에게 장기 가치를 창출할 수 있는 잠재력을 강조하며, 역량 확장과 친환경적 조치에서의 혁신을 통한 가능성을 언급했습니다.
Altor Solutions, une filiale de Compass Diversified (NYSE: CODI), a annoncé son accord pour acquérir Lifoam Industries, pour un montant de 137 millions de dollars en espèces. Lifoam, un fabricant de premier plan de produits d'emballage contrôlés par la température, va élargir la présence d'Altor dans le secteur de l'emballage à chaîne du froid et diversifier sa base de clients. L'acquisition apporte d'importantes synergies, incluant sept sites de fabrication à travers les États-Unis et des capacités d'ingénierie avancées.
Cette démarche stratégique s'inscrit dans la stratégie de croissance à long terme d'Altor, améliorant ses offres de produits et sa couverture géographique. La transaction devrait être finalisée en septembre 2024, sous réserve des conditions habituelles. Le PDG de Compass Diversified, Elias Sabo, a souligné le potentiel de l'acquisition à générer de la valeur à long terme pour les parties prenantes de CODI grâce à des capacités élargies et à des innovations en matière de mesures écologiques.
Altor Solutions, eine Tochtergesellschaft von Compass Diversified (NYSE: CODI), hat die Vereinbarung zur Übernahme von Lifoam Industries für 137 Millionen Dollar in bar bekannt gegeben. Lifoam, ein führender Hersteller von temperaturkontrollierten Verpackungsprodukten, wird die Präsenz von Altor im Bereich der Kühlkettenverpackung erweitern und den Kundenstamm diversifizieren. Die Übernahme bringt erhebliche Synergien mit sich, darunter sieben Produktionsstandorte in den USA und fortschrittliche Ingenieurkapazitäten.
Dieser strategische Schritt steht im Einklang mit der langfristigen Wachstumsstrategie von Altor und verbessert das Produktangebot sowie die geografische Abdeckung. Der Abschluss des Deals wird für September 2024 erwartet, vorbehaltlich der üblichen Bedingungen. Der CEO von Compass Diversified, Elias Sabo, betonte das Potenzial des Erwerbs zur Erzielung langfristiger Werte für die Stakeholder von CODI durch erweiterte Möglichkeiten und Innovationen in umweltfreundlichen Maßnahmen.
- Acquisition expands Altor's presence in the cold-chain packaging sector
- Adds seven manufacturing locations across the U.S., increasing geographic footprint to 23 facilities
- Enhances product offerings with Lifoam's specialized expertise and advanced engineering capabilities
- Diversifies customer base with blue-chip cold-chain accounts
- Aligns with CODI's ESG goals through Lifoam's environmentally friendly initiatives
- Significant cash outlay of $137 million for the acquisition
- Potential integration challenges and costs associated with merging operations
Insights
The $137 million acquisition of Lifoam by Altor Solutions, a Compass Diversified subsidiary, is a strategic move with significant financial implications. This deal expands Altor's market presence in the lucrative cold-chain packaging sector, potentially boosting CODI's revenue streams. The acquisition brings 7 additional manufacturing locations, which should lead to operational synergies and cost efficiencies. Lifoam's blue-chip customer base and specialized capabilities in thermal packaging could drive top-line growth for Altor. However, investors should monitor the integration process and any potential debt incurred for the acquisition. The deal's impact on CODI's financials will be important to watch in upcoming quarters.
This acquisition positions Altor Solutions strategically in the growing cold-chain packaging market. With the global cold chain market expected to reach
The acquisition brings significant technological advantages to Altor Solutions. Lifoam's advanced computer-aided engineering and thermal molding capabilities, coupled with their ISTA Standard 20 certified labs and thermal testing chambers, represent a substantial upgrade in R&D capabilities. This tech infrastructure enables more sophisticated product design, validation and pre-certification processes. The enhanced ability to innovate and rapidly prototype new solutions could give Altor a competitive edge in the cold-chain packaging sector. Moreover, the development of Bioffex, a plant-based expanded polystyrene alternative, showcases Lifoam's commitment to eco-friendly innovation, which aligns with broader industry trends towards sustainable packaging technologies.
WESTPORT, Conn., Aug. 19, 2024 (GLOBE NEWSWIRE) -- Altor Solutions (“Altor”), a subsidiary of Compass Diversified (NYSE: CODI) and a leading designer and manufacturer of custom protective and cold-chain packaging solutions for the industrial and life sciences markets, today announced it has entered into a definitive agreement to acquire Lifoam Industries, LLC (“Lifoam”), a manufacturer and distributor of temperature-controlled shipping solutions, for an enterprise value of
Founded in 1954, Lifoam is a leading manufacturer of temperature-controlled packaging products such as thermal shippers and refrigerant gel packs for the healthcare, commercial and retail industries. Lifoam is a carve-out of the material sciences company Jadex Inc.
The acquisition of Lifoam will expand Altor’s presence in the cold-chain packaging sector and diversify its customer base with blue-chip cold-chain accounts. Lifoam brings significant synergies and enhancements to Altor, including seven manufacturing locations across the U.S. As an engineering-focused organization, Lifoam utilizes advanced computer-aided engineering and thermal molding capabilities to design and validate products, which are then qualified and pre-certified in two ISTA Standard 20 certified labs, equipped with three walk-in and two reach-in thermal testing chambers.
“This acquisition is a pivotal step in accelerating Altor’s long-term strategy to expand our capabilities, particularly in cold-chain packaging solutions,” said Altor’s CEO Terry Moody. “By acquiring Lifoam, we gain infrastructure, design, and certification capabilities. We believe Lifoam’s specialized expertise will attract new customers and enable us to better serve our existing customers with a broader range of new products and expanded geographic coverage.”
Elias Sabo, CEO of Compass Diversified, added: “This acquisition brings substantial commercial, research and development, and operational expertise to Altor’s offerings. It also expands Altor’s geographic footprint to 23 facilities, enabling us to expand our customer base and enhance our ability to serve customers. Additionally, Lifoam’s track record of equipping its facilities with innovative and cost-saving environmentally friendly measures, as well as its development of Bioffex, a plant-based expanded polystyrene alternative, aligns with Altor and CODI’s broader ESG goals and initiatives. We look forward to the combined company’s continued innovation and growth, which we believe will generate long-term value for CODI stakeholders.”
The acquisition is expected to close in September, subject to customary closing conditions.
About Altor Solutions
Based in St. Louis, Missouri, Altor Solutions is an innovative, engineering-focused company dedicated to designing and manufacturing top-quality industrial protective packaging products and cold-chain packaging solutions and services for the life sciences and perishable goods sectors. Established in 1957, Altor Solutions offers a diverse range of materials, including traditional plastics and sustainable, plant-based options. The company operates 16 advanced facilities across North America, specializing in the production and assembly of essential components for protective packaging, OEM parts, and temperature-controlled containers. For more information, please visit www.altorsolutions.com.
About Lifoam
Lifoam Industries, LLC is a leading manufacturer of thermally controlled packaging solutions. Founded in 1954, Lifoam operates seven state-of-the-art manufacturing, warehousing and distribution facilities across the United States, specializing in the production of EPS coolers, refrigerant gels, and innovative packaging solutions tailored for healthcare/pharmaceutical, seafood/commercial, and retail end markets. With a commitment to sustainability and innovation, Lifoam is at the forefront of developing environmentally-friendly packaging alternatives. For more information, please visit www.lifoam.com.
About Compass Diversified
Since its IPO in 2006, CODI has consistently executed its strategy of owning and managing a diverse set of highly defensible, middle-market businesses across the industrial, branded consumer and healthcare sectors. The Company leverages its permanent capital base, long-term disciplined approach, and actionable expertise to maintain controlling ownership interests in each of its subsidiaries, maximizing its ability to impact long-term cash flow generation and value creation. 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 has consistently generated strong returns through its culture of transparency, alignment and accountability. For more information, please visit www.compassdiversified.com.
Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements with regard to the expectations related to the future performance of Lifoam, Altor and CODI and the anticipated closing of the transaction. Words such as "believes," "expects," “will,” “anticipates,” “intends,” “continue,” "projects," “potential,” “assuming,” 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, some of which are not currently known to CODI. In addition to factors previously disclosed in CODI’s reports filed with the SEC, the following factors, among others, could cause actual results to differ materially from forward-looking statements: ability to obtain necessary approvals and meet other closing conditions to the acquisition on the expected terms and schedule; delay in closing the acquisition; difficulties and delays in integrating Lifoam’s business or fully realizing cost savings and other benefits; business disruption following the closing of the transaction; changes in the economy, financial markets and political environment; risks associated with possible disruption in CODI’s operations or the economy generally due to terrorism, natural disasters, social, civil and political unrest or the COVID-19 pandemic; future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); and other considerations that may be disclosed from time to time in CODI’s publicly disseminated documents and filings. Further information regarding CODI and factors which could affect the forward-looking statements contained herein can be found in CODI’s annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. Forward-looking statements speak only as of the date they are made. 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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FAQ
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