Compass Diversified, former parent of Newport Beach-based Lugano, today announced that it\u2019s selling its portable food warming systems subsidiary Sterno to Archer Foodservice Partners for $292.5 million.<\/p>\n
Shares in Compass were up 14% to $7.59 apiece and a $571 million market cap (NYSE: CODI) on news of the transaction.<\/p>\n
\u201cThis transaction is a critical step in reducing leverage at CODI and reflects our commitment to taking decisive action \u2014 strategically selling businesses, rapidly deleveraging the balance sheet and addressing the gap between the market price and our intrinsic value,\u201d Compass Chief Executive Elias Sabo said in a statement.<\/p>\n
Sterno is one of Compass\u2019 eight subsidiaries including Primaloft for apparel insulation and AMT for aerospace products. Compass is also the parent of Costa Mesa-based 5.11 Tactical, which has 165 employees in Orange County.<\/p>\n
Compass said it plans to use the net proceeds from the sale, which is expected to close in May, to repay outstanding debt.<\/p>\n","protected":false},"excerpt":{"rendered":"Compass Diversified, former parent of Newport Beach-based Lugano, today announced that it\u2019s selling its portable food warming systems…\n","protected":false},"author":2,"featured_media":243694,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[163,165,164,12416],"class_list":{"0":"post-243693","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-anaheim","8":"tag-anaheim","9":"tag-anaheim-headlines","10":"tag-anaheim-news","11":"tag-free-stories"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/243693","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=243693"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/243693\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/243694"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=243693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=243693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=243693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}