JADEX TO SELL LIFOAM TO ALTOR SOLUTIONS
Jadex Inc. has announced the sale of Lifoam Industries, to Altor Solutions, a subsidiary of Compass Diversified (NYSE: CODI), for $137 million in cash.
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Rhea-AI Summary
Jadex Inc. has announced the sale of Lifoam Industries, to Altor Solutions, a subsidiary of Compass Diversified (NYSE: CODI), for $137 million in cash. The post-tax proceeds will be used to reduce debt and invest in Jadex's remaining business. Lifoam, a leading manufacturer of temperature-controlled packaging products, has been experiencing growth, particularly in healthcare- and food-related cold chain shipping markets.
Lifoam's success has been driven by innovation, including the development of environmentally-friendly products like Bioffex® technology, a PLA-based bead foam that can be commercially composted in under four weeks. The sale positions Lifoam to continue its growth trajectory as part of Altor, a specialized protective and cold chain packaging solutions business.
Positive
- Sale of Lifoam Industries for $137 million in cash
- Post-tax proceeds to be used for debt reduction and business investment
- Lifoam's growth in healthcare- and food-related cold chain shipping markets
- Development of innovative, eco-friendly products like Bioffex® technology
Negative
- Divestment of a growing business unit from Jadex's portfolio
Details
News Market Reaction – CODI
The recorded move for CODI in the trading session of this news was +2.17%.
Data tracked by StockTitan Argus. Session date unavailable.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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 been growing with its customer base, particularly in the healthcare- and food-related cold chain shipping end markets. Innovation has been a key driver of its success as Lifoam has developed and commercialized environmentally-friendly products. One example is its Bioffex® technology, which is a polylactic acid (PLA)-based bead foam that can be commercially composted in under four weeks.
"We are honored to have been part of Lifoam's growth story and are immensely proud of how it has expanded its customer base and developed innovative products with eco-friendly, sustainable capabilities while part of Jadex," said Mario D'Ovidio, CEO of Jadex. "We believe that Lifoam is well positioned to succeed as part of Altor, a pure-play protective and cold chain packaging solutions business."
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Prosek Partners
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View original content:https://www.prnewswire.com/news-releases/jadex-to-sell-lifoam-to-altor-solutions-302225032.html
SOURCE Jadex Inc.
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