Compass Diversified sells Crosman to Daisy Manufacturing

WESTPORT, Conn. – Compass Diversified (NYSE: CODI), a leading middle-market business owner, today announced the sale of its airgun division, Crosman Corporation, to Daisy Manufacturing Company. The deal, which was simultaneously reached and completed, marks Crosman's move from the portfolio of Velocity Outdoor, Inc., a subsidiary of Compass Diversified, to Daisy, a well-known brand in the airsoft industry.

Crosman has been a pioneer in airguns for more than a century, designing, manufacturing and marketing products under the Crosman, Benjamin and Centerpoint Optics brand names. The current new owner, Daisy Manufacturing, also has a long history in the airsoft market, offering products under brands such as Daisy and Winchester. Daisy is part of the BRS & Co. product portfolio.

Proceeds from the sale will be used for debt reduction and general corporate purposes. Compass Diversified CEO Elias Sabo expressed his gratitude for Crosman's contributions since the acquisition in 2006 and is confident in Crosman's future success under Daisy's leadership. Velocity Outdoor Chairman Tom McGann thanked the Crosman team for their dedication and wished them continued success.

Robert W. Baird & Co served as exclusive financial advisor for the transaction, and Gibson, Dunn & Crutcher LLP provided legal counsel to Compass Diversified. Daisy is advised by Kirkland & Ellis LLP.

Since its initial public offering in 2006, Compass Diversified has focused on owning and managing a diversified portfolio of middle market businesses across various industries, maintaining control of its subsidiaries to drive long-term value creation. The company is known for providing debt and equity capital to subsidiaries, promoting financial and operational flexibility.

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Investment Professional Insights

With Compass Diversified (NYSE: CODI) recently spinning off Crosman Corporation to streamline its portfolio, investors are paying close attention to the company's financials and stock performance. Compass Diversified has a market capitalization of $1.66 billion, according to the latest data from InvestingPro, reflecting its huge presence in the middle-market business. Furthermore, the company's gross margin remained strong at 43.39% for the trailing 12 months ended Q4 2023, indicating strong operating profitability. Additionally, the company's six-month total price return was 34.17%, showing investor confidence and a positive market outlook.

Supplementing these indicators are key InvestingPro Tips that can guide potential investment decisions. It's worth noting that Compass Diversified has maintained its dividend for an impressive 19 consecutive years, which may be a reassuring factor for income-focused investors. Additionally, while the company wasn't profitable in the last twelve months, analysts predict Compass Diversified will return to profitability this year. This forward-looking optimism is a key factor for those considering the company's future growth potential.

For those looking for deeper analysis and more insights, InvestingPro has a number of tips on Compass Diversified, including earnings revisions and share price movements. Investors can gain a more detailed understanding of a company's prospects by providing a comprehensive list of 7 additional InvestingPro Tips.To access these insights and enhance your investing strategy, use the coupon code PRONEWS24 Annual or biennial Pro and Pro+ subscriptions receive an additional 10% discount.

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