WESTPORT, Conn., March 27, 2017 /PRNewswire/ -- Compass
Diversified Holdings (NYSE: CODI) ("CODI" or the "Company"), an
owner of leading middle market businesses, announced today that its
subsidiary, Clean Earth, Inc. ("Clean Earth"), has acquired AERC
Recycling Solutions ("AERC").
Headquartered in Allentown, PA,
AERC is a nationally regulated and permitted universal waste and
electronic waste recycling company serving over 2,500 commercial
and industrial customers across the
United States. AERC processes fluorescent and mercury lamps,
batteries, ballasts, retort and other forms of commonly produced
hazardous wastes. In addition, AERC provides comprehensive
electronic waste recycling services, specializing in asset
recovery, disassembly and secure information destruction.
Founded in 1990, AERC owns and operates processing facilities in
Allentown, PA, Richmond, VA, West
Melbourne, FL, and Hayward,
CA, as well as a transfer station in Bolingbroke, GA. AERC's universal waste
facility in Allentown has a RCRA
Part B permit. For the trailing twelve months ended December 31, 2016, AERC reported net revenue of
approximately $13 million. CODI
funded the purchase price through available cash on its balance
sheet.
Commenting on the transaction, Alan
Offenberg, CEO of CODI, said, "The acquisition of AERC makes
this our fourth accretive add-on acquisition since acquiring Clean
Earth in 2014. This addition will expand Clean Earth's service
offering to include universal and electronic waste processing
capabilities, while creating new cross-selling opportunities for
Clean Earth. The acquisition will enhance Clean Earth's
presence in the Eastern U.S., while giving the company
coast-to-coast coverage via AERC's California-based facilities. Utilizing CODI's
considerable financial resources, we will continue to pursue add-on
and platform acquisitions of attractive middle market companies to
generate long-term shareholder value."
Chris Dods, CEO of Clean Earth, commented, "For over 25 years,
AERC has been a leader in serving the universal and electronic
waste processing needs of commercial and industrial customers
across the nation. The addition of AERC enables us to recycle these
wastes internally while opening up new opportunities for cross
selling with existing customers and adding new regional and
national customers."
About Compass Diversified Holdings ("CODI")
CODI owns
and manages a diverse family of established North American middle
market businesses. Each of its current subsidiaries is a leader in
its niche market.
CODI maintains controlling ownership interests in each of its
subsidiaries in order to maximize its ability to impact long term
cash flow generation and value. The Company provides both debt and
equity capital for its subsidiaries, contributing to their
financial and operating flexibility. CODI utilizes the cash flows
generated by its subsidiaries to invest in the long-term growth of
the Company and to make cash distributions to its shareholders.
Our eight majority-owned subsidiaries are engaged in the
following lines of business:
- The design and marketing of purpose-built tactical apparel and
gear serving a wide range of global customers (5.11);
- The manufacture of quick-turn, small-run and production rigid
printed circuit boards (Advanced Circuits);
- The manufacture of engineered magnetic solutions for a wide
range of specialty applications and end-markets (Arnold Magnetic
Technologies);
- Environmental services for a variety of contaminated materials
including soils, dredged material, hazardous waste and drill
cuttings (Clean Earth);
- The design and marketing of wearable baby carriers, strollers
and related products (ERGObaby);
- The design and manufacture of premium home and gun safes
(Liberty Safe);
- The manufacture and marketing of branded, hemp-based food
products (Manitoba Harvest); and
- The manufacture and marketing of portable food warming fuels
and creative ambience solutions for the hospitality and consumer
markets (Sterno Products).
This press release may contain certain forward-looking
statements, including statements with regard to the future
performance of CODI. Words such as "believes," "expects,"
"projects," and "future" or similar expressions, are intended to
identify forward-looking statements. These forward-looking
statements are subject to the inherent uncertainties in predicting
future results and conditions. Certain factors could cause actual
results to differ materially from those projected in these
forward-looking statements, and some of these factors are
enumerated in the risk factor discussion in the Form 10-K filed by
CODI with the SEC for the year ended December 31, 2016 and other filings with the SEC.
Except as required by law, CODI undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
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SOURCE Compass Diversified Holdings