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Codi Acquires Majority Stake in Camelbak

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The majority share holder of suspension expert Fox Racing Shox, stock-listed Compass Diversified Holdings (Codi) spreads its wings in the bicycle and outdoor industry with the acquisition of Camelbak Products. The hydration pack pioneer

Codi Acquires Majority Stake in Camelbak

WESTPORT. USA – The majority share holder of suspension expert Fox Racing Shox, stock-listed Compass Diversified Holdings (Codi) spreads its wings in the bicycle and outdoor industry with the acquisition of Camelbak Products.

The hydration pack pioneer Camelbak Products LCC suits well in Codi’s company portfolio of niche market leaders. Codi pays a purchase price all in all of US$ 257.8 million to the Camelbak majority shareholder CGI Magyar Holdings (CMH). According to Codi’s statement, this amount is “based on a total enterprise value of $245.0 million and includes $12.5 million of cash and working capital adjustments.”

The acquisition was consummated through a majority-owned subsidiary, Camelbak Acquisition Corp. This structure will allow Codi to amortize a substantial portion of the purchase price for tax purposes”, is noted in a press release.

Codi’s initial common equity ownership in Camelbak Acquisition Corp. is approximately 89.9 percent. In addition to its equity investment in Camelbak Acquisition Corp., the Westport/Connecticut based holdings provided loans totaling US$145.2 million to Camelbak as part of the transaction.

Camelbak had been searching for an investor for a long time. The hydration pack pioneer is selling its drinking system products in more than 50 countries worldwide and reported 2010 revenues of approximately US$ 122.2 million. Current Camelbak-CEO Sally McCoy stays on board.
 

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