Compass Diversified Sells Ergobaby to Highlander Partners
Deal News | Dec 30, 2024 | Globenewswire
Compass Diversified Holdings (NYSE: CODI) announced the simultaneous entry into a definitive agreement and completion of the sale of its majority-owned subsidiary, The Ergo Baby Carrier, Inc., to private investment firm Highlander Partners, L.P. The transaction will allow Compass Diversified to pay down existing debts and support general corporate purposes. CEO Elias Sabo emphasized Ergobaby’s strong position in the market for premium juvenile products and stated that the proceeds would support future acquisitions and management of innovative brands. Ergobaby CEO Jason Frame expressed enthusiasm for the company's future prospects under Highlander Partners. Robert W. Baird & Co. acted as the exclusive financial advisor, while Gibson, Dunn & Crutcher LLP served as legal counsel to Compass Diversified. Katten Muchin Rosenman LLP provided legal counsel to Highlander. CODI, known for its strategy of owning and managing middle-market businesses, aims to use its long-term disciplined approach for future growth and shareholder value.
Sectors
- Private Equity
- Consumer Products
- Financial Services
Geography
- United States – Compass Diversified is based in the U.S., and Highlander Partners is a Dallas-based firm. The transaction is primarily significant to the U.S. market.
Industry
- Private Equity – Relevant as Compass Diversified is a private equity firm that manages and sells portfolio companies like Ergobaby.
- Consumer Products – Ergobaby operates in the consumer products sector, specifically within the juvenile products market.
- Financial Services – Involves financial advisory and legal services in the sale transaction.
Financials
- Not Disclosed – The financial terms of the sale were not disclosed.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Compass Diversified | Selling Company | Company | An owner of middle-market businesses, selling its majority stake in Ergobaby. |
| The Ergo Baby Carrier, Inc. | Target Company | Company | A leading brand in premium juvenile products, sold by Compass Diversified. |
| Highlander Partners, L.P. | Bidding Company | Company | A Dallas-based private investment firm that purchased Ergobaby. |
| Robert W. Baird & Co | Financial Advisor | Company | Provided exclusive financial advisory services to CODI. |
| Gibson, Dunn & Crutcher LLP | Legal Counsel to Seller | Company | Provided legal counsel services to Compass Diversified. |
| Katten Muchin Rosenman LLP | Legal Counsel to Buyer | Company | Provided legal counsel services to Highlander Partners. |
| Elias Sabo | CEO of Compass Diversified | Person | CEO of Compass Diversified, involved in the decision to sell Ergobaby. |
| Jason Frame | CEO of Ergobaby | Person | CEO of Ergobaby, deciding its future post-sale. |