JADEX COMPLETES SALE OF LIFOAM TO ALTOR SOLUTIONS

Rhea-AI Summary

Jadex Inc. has completed the sale of Lifoam Industries, to Altor Solutions, a subsidiary of Compass Diversified (NYSE: CODI), for $137 million in cash, excluding working capital and certain other adjustments. Lifoam is a leading manufacturer of temperature-controlled packaging products such as thermal shippers and refrigerant gel packs for healthcare, commercial, and retail customers.

Over the past several years, Lifoam has focused on innovation, new product development, and environmentally-friendly products, which has allowed it to grow its customer base in the healthcare- and food-related cold chain shipping end markets.

Positive

• Jadex Inc. received $137 million in cash from the sale of Lifoam Industries
• The sale strengthens Compass Diversified's portfolio in the temperature-controlled packaging sector
• Lifoam has shown growth in healthcare and food-related cold chain shipping markets

Negative

• Jadex Inc. is divesting a potentially profitable business unit

Insights

Financial Analyst

The sale of Lifoam Industries to Altor Solutions for $137 million in cash is a significant transaction for both Jadex and Compass Diversified (CODI). This deal represents a strategic move in the temperature-controlled packaging sector, which has seen increased demand due to growth in healthcare and food-related cold chain shipping.

For CODI, this acquisition expands its portfolio in a high-growth market. The $137 million price tag, excluding working capital and other adjustments, suggests a substantial investment in Lifoam's capabilities and market position. Lifoam's focus on innovation and environmentally-friendly products aligns with current market trends, potentially offering CODI a strong platform for future growth.

Investors should consider the impact on CODI's financial position and potential synergies with its existing subsidiaries. While the immediate effect may be a decrease in cash reserves, the long-term benefits could include increased revenue streams and market share in the temperature-controlled packaging industry. The transaction's success will depend on CODI's ability to integrate Lifoam effectively and capitalize on its growth potential.

Market Research Analyst

The acquisition of Lifoam by Altor Solutions, a CODI subsidiary, reflects the growing importance of temperature-controlled packaging in global supply chains. This sector has seen significant expansion, driven by:

• Increased demand for pharmaceutical and biologics shipments
• Growth in meal kit and perishable food delivery services
• Stricter regulations on temperature-sensitive product transportation

Lifoam's position in this market, with its focus on innovation and eco-friendly solutions, aligns well with current industry trends. The company's growth in healthcare- and food-related cold chain shipping end markets is particularly noteworthy, as these sectors are expected to continue expanding.

For CODI investors, this acquisition represents entry into a high-potential market segment. The temperature-controlled packaging industry is projected to grow at a CAGR of 8.3% from 2021 to 2028, reaching $26.4 billion by 2028. This growth trajectory suggests that the $137 million investment could yield substantial returns if Altor can effectively leverage Lifoam's capabilities and market position.

NEW YORK, Oct. 2, 2024 /PRNewswire/ -- Jadex Inc. ("Jadex"), a manufacturer and material sciences company, today announced it has completed the previously announced sale of Lifoam Industries, LLC ("Lifoam" or the "Company") to Altor Solutions ("Altor"), a subsidiary of Compass Diversified (NYSE: CODI), for $137 million in cash (excluding working capital and certain other adjustments).

Lifoam is a leading manufacturer of temperature-controlled packaging products such as thermal shippers and refrigerant gel packs for healthcare, commercial and retail customers. Over the past several years, Lifoam's focus on innovation, new product development and environmentally-friendly products has allowed it to grow its customer base in the healthcare- and food-related cold chain shipping end markets.

ABOUT JADEX INC.

Jadex is a U.S.-based manufacturing and material sciences company utilizing innovation and technology to develop sustainable products that serve the medical, industrial and consumer markets. The range of products includes custom-designed plastic components, plastic and bio-based cutlery, engineered nylon resins and monofilaments, zinc products and temperature-controlled products. Jadex operates out of 18 manufacturing facilities across the continental U.S., U.K. and Puerto Rico and has approximately 1,800 employees. For more information, visit Jadex.com.

MEDIA CONTACT

Julia Sidi
Prosek Partners
pro-onerock@prosek.com 

View original content:https://www.prnewswire.com/news-releases/jadex-completes-sale-of-lifoam-to-altor-solutions-302265540.html

SOURCE Jadex Inc.

FAQ

What is the value of the Lifoam Industries sale to Altor Solutions?

Jadex Inc. sold Lifoam Industries to Altor Solutions, a subsidiary of Compass Diversified (NYSE: CODI), for $137 million in cash, excluding working capital and certain other adjustments.

What products does Lifoam Industries manufacture?

Lifoam Industries manufactures temperature-controlled packaging products such as thermal shippers and refrigerant gel packs for healthcare, commercial, and retail customers.

How has Lifoam Industries grown its customer base in recent years?

Lifoam Industries has grown its customer base in healthcare- and food-related cold chain shipping end markets by focusing on innovation, new product development, and environmentally-friendly products.

Who acquired Lifoam Industries from Jadex Inc.?

Altor Solutions, a subsidiary of Compass Diversified (NYSE: CODI), acquired Lifoam Industries from Jadex Inc.