Compass Diversified-Backed Altor Solutions, Inc. Announces Acquisition of Plymouth Foam

SCOTTSDALE, Ariz., Oct. 05, 2021 (GLOBE NEWSWIRE) -- Altor Solutions, Inc. (“Altor” or “Altor Solutions”), a subsidiary of Compass Diversified (NYSE: CODI) and a leading designer and manufacturer of custom protective packaging solutions and componentry, today announced that it has acquired Plymouth Foam, LLC (“Plymouth”), a manufacturer of protective packaging and componentry, for an enterprise value of $56 million, excluding customary closing adjustments.

This transaction strengthens Altor’s status as a leading provider of packaging and componentry solutions through an expanded geographic presence, the addition of capabilities in componentry design and the cold chain sector and access to a broader base of clients across a wide variety of end-markets, including food and beverage, pharmaceuticals, recreational vehicles and construction. Plymouth, headquartered in Plymouth, Wisconsin and founded in 1978, operates two manufacturing facilities in Plymouth and Gnadenhutten, Ohio. With a high-value product offering – including custom protective packaging, cold chain packaging and internal components made from expanded polystyrene and expanded polypropylene – Plymouth’s world-class engineers provide tailored solutions and design applications that Altor expects can be leveraged across its growing geographic footprint and customer base.

“This transaction builds on a period of growth and momentum that began with our rebranding to Altor Solutions earlier this year,” said James Hughes, CEO of Altor. “We believe that the acquisition of Plymouth, with its wide array of high-value, highly engineered products, further expands our business and capabilities. With access to Plymouth’s diversified client base, two well-placed manufacturing facilities, complementary expertise and talented team, we are confident we will significantly expand Altor and Plymouth’s combined reach throughout the country. We are pleased to welcome Plymouth’s impressive team and look forward to capitalizing on the strengths of both companies as we deliver the best solutions for our growing customer base.”

“Altor has capitalized on the strong market for packaging and componentry, and we believe there is tremendous potential for growth through this combination with Plymouth,” said Elias Sabo, CEO of CODI. “We are excited to leverage CODI’s permanent capital structure to make this strategic investment and help build our subsidiary’s business. With CODI’s support, Altor is able to facilitate this transaction at the right time and capitalize on evolving consumer demands to position its strong platform for growth, enhancing long-term value for CODI shareholders.”

About Altor Solutions

Headquartered in Scottsdale, AZ, Altor Solutions is a dynamic, engineering-driven company whose goal is to design and produce superior products that help customers solve their needs for Packaging, Insulation and Componentry (PIC). The company offers a wide range of materials from traditional plastics to organic and plant-based options. Founded in 1957, the company operates 16 state-of-the-art facilities across North America specializing in the production and assembly of key components utilized in protective packaging, OEM componentry and temperature-controlled containers. For more information, please visit www.altorsolutions.com.

About Compass Diversified (“CODI”)

CODI owns and manages a diverse set of highly defensible North American middle market businesses. Each of its current subsidiaries is a leader in its niche market.

Leveraging its permanent capital base, long-term disciplined approach and actionable expertise, CODI maintains controlling ownership interests in each of its subsidiaries, maximizing its ability to impact long-term cash flow generation and value creation. CODI 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 its long-term growth and has consistently generated strong returns through its culture of transparency, alignment and accountability.

CODI’s ten majority-owned subsidiaries are engaged in the following lines of business:

• The design and marketing of purpose-built technical 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 design and manufacture of custom packaging, insulation and componentry (Altor Solutions);
  
  
• The manufacture of engineered magnetic solutions for a wide range of specialty applications and end-markets (Arnold Magnetic Technologies);
  
  
• The design and marketing of dial-based closure systems that deliver performance fit across footwear, headwear and medical bracing products (BOA Technology);
  
  
• The design and marketing of wearable baby carriers, strollers and related products (Ergobaby);
  
  
• The design, manufacture, and marketing of high-end, one-of-a-kind jewelry (Lugano Diamonds);
  
  
• The design and manufacture of baseball and softball equipment and apparel (Marucci Sports);
  
  
• The manufacture and marketing of portable food warming systems used in the foodservice industry, creative indoor and outdoor lighting, and home fragrance solutions for the consumer markets (Sterno); and
  
  
• The design, manufacture and marketing of airguns, archery products, optics and related accessories (Velocity Outdoor).
  

Forward Looking Statements

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements with regard to the expectations related to the future performance of Altor and CODI. Words such as “believes,” ”expects,” “will”, “anticipates,” “intends,” ”projects” “potential”, “assuming,” 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, some of which are not currently known to CODI. In addition to factors previously disclosed in CODI’s reports filed with the SEC, the following factors could cause actual results to differ material from forward-looking statements: business disruption following the closing of the transaction; changes in the economy, financial markets and political environment; risks associated with possible disruption in CODI’s and/or Altor’s operations or the economy generally due to terrorism, natural disasters, social, civil and political unrest or the COVID-19 pandemic; future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); general considerations associated with the COVID-19 pandemic and its impact on the markets in which CODI and/or Altor operate; and other considerations that may be disclosed from time to time in CODI’s publicly disseminated documents and filings, including, but not limited to, the factors enumerated in the Form 10-K filed by CODI with the SEC for the year ended December 31, 2020, the proxy statement filed by CODI with the SEC on June 23, 2021 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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