M&A: Compass Diversified Holdings

Form Type: 8-K

Filing Date: 2024-12-30

Corporate Action: Merger

Type: New

Accession Number: 000134512624000066

Comments: On December 27, 2024, Compass Group Diversified Holdings LLC, as the representative of the holders of stock and options of Ergobaby, entered into a definitive Agreement and Plan of Merger with ERGO Acquisition LLC and Aloha Merger Sub LLC to sell all issued and outstanding securities of Ergobaby through a merger, making Ergobaby a wholly owned subsidiary of Acquiror. The sale price is based on an enterprise value of $104 million, subject to adjustments. Compass Group owned 82% of Ergobaby's stock prior to the merger and received approximately $99.1 million in proceeds at closing, which will be used to reduce outstanding debt. The company expects to record a pre-tax gain from the sale of $1 million to $8 million for the quarter ending December 31, 2024. On December 30, 2024, a press release was issued announcing the closing of the sale.

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