Compass Diversified Holdings (CODI), an owner of middle-market businesses, said on Monday that it has inked a deal to sell the food service business of its majority-owned subsidiary, SternoCandleLamp Holdings, Inc., to Archer Foodservice Partners, a provider of foodservice consumables, for $292.5 million.
The company will use the net proceeds from the sale, to be closed in May, to repay debt.
For 2025, the business to be sold had generated subsidiary adjusted EBITDA of around $30.3 million.
Elias Sabo, CEO of Compass Diversified, said: "This transaction is a critical step in reducing leverage at CODI and reflects our commitment to taking decisive action-strategically selling businesses, rapidly deleveraging the balance sheet and addressing the gap between the market price and our intrinsic value."
Post transaction, CODI will retain Sterno's home fragrance business, which will continue to operate under the name of Rimports.
CODI was up by 5.89% at $7.10 in the pre-market trade on the New York Stock Exchange.
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