M&A Deal Summary

Compass Diversified Acquires Sterno

On October 13, 2014, private equity firm Compass Diversified acquired consumer products company Sterno from Westar Capital for 163M USD

Acquisition Highlights
  • This is Compass Diversified’s 3rd transaction in the Consumer Products sector.
  • This is Compass Diversified’s 9th largest (disclosed) transaction.
  • This is Compass Diversified’s 16th transaction in the United States.
  • This is Compass Diversified’s 1st transaction in Texas.

M&A Deal Summary

Date 2014-10-13
Target Sterno
Sector Consumer Products
Buyer(s) Compass Diversified
Sellers(s) Westar Capital
Deal Type Secondary Buyout
Deal Value 163M USD

Target

Sterno

Plano, Texas, United States
Sterno manufactures and markets portable food-warming fuels, catering equipment and accessories, as well as home décor lighting and candle products for the hospitality, retail and consumer markets. Sterno was established in 1997 and is based in Plano, Texas.

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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 $10 million. Compass Diversified was founded in 1998 and is headquartered in Westport, Connecticut.


DEAL STATS #
Overall 16 of 26
Sector: Consumer Products M&A 3 of 9
Type: Secondary Buyout M&A Deals 8 of 13
State: Texas M&A 1 of 1
Country: United States M&A 16 of 25
Year: 2014 M&A 2 of 2
Size (of disclosed) 9 of 17
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-08-07 Clean Earth

King of Prussia, Pennsylvania, United States

Clean Earth is a U.S.-based environmental-services company that provides hazardous and non-hazardous waste disposal, recycling, soil remediation, dredged-material processing, and electronic/industrial-waste management services. It operates a large network of fully-permitted Treatment, Storage and Disposal Facilities (TSDFs) across the United States, offering services to industries such as manufacturing, chemical, retail, energy, infrastructure, pharmaceuticals, and government. Clean Earth was established in 1990 and is based in King of Prussia, Pennsylvania.

Buy $243M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-07-13 Manitoba Harvest

Winnipeg, Manitoba, Canada

Fresh Hemp Foods Ltd. (Manitoba Harvest) is a provider of food products. Manitoba Harvest’s 100% all-natural product lineup includes hemp hearts, hemp protein powder, and hemp snacks and is currently carried in about 16,000 retail locations across the U.S. and Canada.

Buy CA$132M

Seller(S) 1

SELLER

Westar Capital

Costa Mesa, California, United States

Category Private Equity Firm
Founded 1987
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Westar Capital LLC was a private investment firm focused on acquiring established middle-market growth companies in partnership with management. Westar also sought to provide equity financing for corporate expansions, restructurings, acquisitions, and fund shareholder liquidity needs. Westar Capital LLC was established in 1987 and was based in Costa Mesa, California.


DEAL STATS #
Overall 12 of 12
Sector: Consumer Products M&A 4 of 4
Type: Secondary Buyout M&A Deals 4 of 4
State: Texas M&A 3 of 3
Country: United States M&A 12 of 12
Year: 2014 M&A 1 of 1
Size (of disclosed) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-01-24 Petmate

Arlington, Texas, United States

Petmate is a supplier of a wide variety of non-food pet products to retailers. The Company’s diverse product line includes crates and carriers, outdoor shelters, feeding and watering, and a wide selection of innovative toys. Petmate reaches customers through a multi-channel approach which includes big box pet retailers, mass merchandisers, major e-commerce retailers, farm and ag stores, and specialty pet stores. Petmate was founded in 1959 and is based in Arlington, Texas.

Sell -