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Compass Diversified To Sell Liberty Safe For $147.5 Mln

Compass Diversified (CODI), that owns and manages several middle market businesses, on Monday announced it has entered into a definitive agreement to sell its unit Liberty Safe Holding Corporation, to an affiliate of Monomoy Capital Partners for approximately $147.5 million in cash.


The closing of this transaction is expected to occur by the end of August 2021.


Liberty Safe Holding Corporation is the parent company of Liberty Safe and Security Products, Inc and is involved in the design and manufacture of premium home and gun safes.


Monomoy Capital Partners is a middle market private investment firm which invests in the debt and equity of manufacturing, distribution and consumer product businesses.


Compass Diversified expects a gain of approximately $75 million to $85 million on the sale. Net proceeds are intended to be used for general corporate purposes and to fund the previously announced special distribution of $0.88 per common share in connection with the company's tax reclassification later this quarter or early in the fourth quarter.


Lincoln International LLC acted as financial advisor and Squire Patton Boggs (US) LLP acted as legal counsel to CODI. Ropes & Gray LLP acted as legal advisor to Monomoy.


Shares of Compass Diversified are currently trading at $24.08, down $0.42 or 1.71 percent from previous close.

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