M&A Deal Summary

Compass Diversified Acquires Arnold Magnetic

On March 6, 2012, private equity firm Compass Diversified acquired manufacturer Arnold Magnetic from Audax Private Equity for 131M USD

Acquisition Highlights
  • This is Compass Diversified’s 1st transaction in the Manufacturing sector.
  • This is Compass Diversified’s 11th largest (disclosed) transaction.
  • This is Compass Diversified’s 14th transaction in the United States.
  • This is Compass Diversified’s 1st transaction in New York.

M&A Deal Summary
Date 2012-03-06
Target Arnold Magnetic
Sector Manufacturing
Buyer(s) Compass Diversified
Sellers(s) Audax Private Equity
Deal Type Secondary Buyout
Deal Value 131M USD
Advisor(s) Houlihan Lokey (Financial)
Kirkland & Ellis (Legal)

Target

Arnold Magnetic

Rochester, New York, United States
Arnold Magnetic is a manufacturer of engineered, mission-critical magnetic products for aerospace, military, alternative energy, and industrial applications. Arnold Magnetic was established in 1989 and is based in Rochester, New York.

Search 201,429 Deals Now

SEARCH BY

  • Buyer Type (PE or Strategic)
  • Deal Size ($10M to $10B+)
  • Sector (60 Sectors)
  • Deal Type
  • Geography
  • & More

Try For Free 7-Day Free Trial

Buyer(S) 1

Buyer

Compass Diversified

Westport, Connecticut, United States

Investor Investor Investor Investor Investor

Category Private Equity Firm
Founded 1998
PE ASSETS 3.3B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Compass Diversified is a holding company focused on acquiring controlling interests in profitable small to middle-market businesses in attractive niche industries. Compass generally looks for US-based companies with proven management in place, low technological and/or product obsolescence risk, diverse customers, and EBITDA of at least $20 million. Compass Diversified was founded in 1998 and is headquartered in Westport, Connecticut.

DEAL STATS #
Overall 14 of 25
Sector (Manufacturing) 1 of 2
Type (Secondary Buyout) 6 of 13
State (New York) 1 of 4
Country (United States) 14 of 24
Year (2012) 1 of 1
Size (of disclosed) 11 of 17
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-10-18 Staffmark Holdings

Cincinnati, Ohio, United States

Staffmark is a provider of staffing services in the United States, operating predominantly under the well recognized brand name, 'Staffmark.' Staffmark operates over 300 locations, providing staffing solutions across a comprehensive range of disciplines. Staffmark's customized approach and market-specific knowledge are competitive advantages in a dynamic labor and economic environment.

Sell $295M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-05-03 HALO

Sterling, Illinois, United States

HALO is a marketing services platform that distributes promotional products and provides employee recognition services. HALO was founded in 1952 and is headquartered in Sterling, Illinois.

Sell $77M

Seller(S) 1

SELLER

Audax Private Equity

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor

Category Private Equity Firm
Founded 1999
PE ASSETS 19.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Audax Private Equity is a private equity firm focused on acquiring control positions in a variety of mid to large North American headquartered companies. The Firm segments its activities into lower middle-market and larger scale investing. Within its larger group, Audax targets profitable businesses valued up to $800 million and within its lower middle-market group, the Firm seeks companies valued up to $125 million. Sectors of interest include business services, consumer products/services, financial services, healthcare services, industrial services, software, and technology. Audax has a special interest in businesses that can benefit from a buy and build investment strategy for growth. Audax Private Equity was formed in 1999 and is based in Boston, Massachusetts.

DEAL STATS #
Overall 27 of 102
Sector (Manufacturing) 2 of 5
Type (Secondary Buyout) 13 of 55
State (New York) 3 of 5
Country (United States) 26 of 97
Year (2012) 5 of 7
Size (of disclosed) 18 of 21
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-02-10 Phillips & Temro

Eden Prairie, Minnesota, United States

Phillips & Temro is a supplier of highly engineered diesel and gasoline engine components with an emerging presence in electric and hybrid electric vehicle platforms. Phillips & Temro was founded in 1920 and is based in Eden Prairie, Minnesota.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-04-05 Tri-Ed Distribution

Woodbury, New York, United States

Tri-Ed is an independent distributor of security and low-voltage technology product. Tri-Ed serves four major segments of the security business including video, access control, intrusion detection and fire/life safety, and provides approximately 110,000 products to over 20,000 active dealer and integrator customers. The company employs over 600 people across 63 locations in the US and Canada.

Buy -
Mergr

Product

Company

Legal