JADEX TO SELL LIFOAM TO ALTOR SOLUTIONS

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

NEW YORK, Aug. 19, 2024 /PRNewswire/ -- Jadex Inc. ("Jadex"), a manufacturer and material sciences company, today announced it has entered into a definitive agreement to sell Lifoam Industries, LLC ("Lifoam" or the "Company") to Altor Solutions ("Altor"), a subsidiary of Compass Diversified (NYSE: CODI), for $137 million in cash. Post-tax net proceeds from the sale are expected to be used to pay down debt and fund investment in the remaining business.

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."

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-to-sell-lifoam-to-altor-solutions-302225032.html

SOURCE Jadex Inc.

FAQ

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

Jadex Inc. has agreed to sell Lifoam Industries, to Altor Solutions, a subsidiary of Compass Diversified (NYSE: CODI), for $137 million in cash.

How will Jadex use the proceeds from the Lifoam sale?

Jadex plans to use the post-tax net proceeds from the sale to pay down debt and fund investment in its remaining business.

What are Lifoam's main products and target markets?

Lifoam manufactures temperature-controlled packaging products such as thermal shippers and refrigerant gel packs, primarily for healthcare, commercial, and retail customers, with a focus on cold chain shipping end markets.

What is Bioffex® technology developed by Lifoam?

Bioffex® is an environmentally-friendly technology developed by Lifoam. It is a polylactic acid (PLA)-based bead foam that can be commercially composted in under four weeks.