{"success":true,"data":{"pressRelease":{"id":"18784","rtpr_id":"nGNX5hjlyt","ticker":"CODI","exchange":"NYSE","all_tickers":["CODI"],"title":"Compass Diversified Completes Sale of Sterno’s Food Service Business","author":"Globe Newswire","published_at":"2026-05-04T11:15:00.103Z","article_body":"WESTPORT, Conn., May 04, 2026 (GLOBE NEWSWIRE) -- Compass Diversified (NYSE:\nCODI) (“CODI” or the “Company”), an owner of leading middle-market\nbusinesses, today announced the completion, as of May 1, 2026, of the\nCompany’s previously announced sale of the food service business of its\nmajority-owned subsidiary, SternoCandleLamp Holdings, Inc. (“Sterno”), to\nArcher Foodservice Partners (“Archer”), a leading provider of foodservice\nconsumables and parent entity of companies Handgards, Inno-Pak, and Fineline\nSettings, and a portfolio company of Wynnchurch Capital, L.P.\n(“Wynnchurch”).\n\nThe sale price of Sterno’s food service business was based on an enterprise\nvalue of $292.5 million, subject to customary working capital and other\nadjustments. After these adjustments and the allocation to Sterno’s\nnon-controlling shareholders, CODI received approximately $280 million of\ntotal proceeds from the sale at closing.\n\nCODI plans to use net proceeds from the divestiture to repay outstanding\nsenior secured debt, which CODI expects to reduce its senior secured net\nleverage ratio to below 1.0x, thereby avoiding fees, as of June 30, 2026, tied\nto excess leverage under its senior secured indebtedness.\n\n“The closing of this transaction marks a meaningful step forward in our\nongoing deleveraging efforts,” said Elias Sabo, Chief Executive Officer of\nCompass Diversified. “We moved quickly to execute this sale at a favorable\nvaluation amidst a challenging macroeconomic backdrop. We are grateful to the\nSterno team for their many contributions and believe the food service business\nis well positioned for its next chapter with Archer.”\n\nRaymond James acted as financial advisor to Sterno. Brownstein Hyatt Farber\nSchreck, LLP acted as legal counsel to Sterno and CODI. Jefferies acted as\nfinancial advisor to CODI.\n\nAbout Compass Diversified (“CODI”)\n\nCODI leverages its permanent capital base and long-term disciplined approach,\nmaintaining controlling ownership interests in each of its subsidiaries and\nmaximizing its ability to impact long-term cash flow generation and value\ncreation. The Company provides both debt and equity capital for its\nsubsidiaries, contributing to their financial and operating flexibility. CODI\nutilizes the cash flows generated by its subsidiaries to invest in the\nlong-term growth of the Company and seeks to generate strong returns through\nits culture of transparency, alignment and accountability.\n\nForward Looking Statements\n\nThis press release contains forward-looking statements within the meaning of\nSection 27A of the Securities Act of 1933, as amended, and Section 21E of the\nSecurities Exchange Act of 1934, as amended, including without limitation,\nwith respect to the sale of Sterno and the future performance of Sterno and\nRimports. Such forward-looking statements may be identified by, among other\nthings, the use of forward-looking terminology such as “believe,”\n“expect,” “may,” “could,” “would,” “plan,” “intend,”\n“estimate,” “predict,” “future,” “potential,” “continue,”\n“should” or “anticipate” or the negative thereof or other variations\nthereon or comparable terminology, or by discussions of strategy that involve\nrisks and uncertainties. These statements are based on beliefs and assumptions\nby management, and on information currently available to management. These\nstatements involve risk and uncertainties that could cause actual results and\noutcomes to differ, perhaps materially, including but not limited to: the\nrisks to the Company’s financial condition associated with the fees that\nwill be incurred under its senior credit facility if leverage is not reduced\nas of the milestone dates set forth in the senior credit facility; and the\neffect of the announcement of the sale on the Rimports business or Rimport’s\nbusiness relationships, performance, and business generally. Please see\nCODI’s Annual Report on Form 10-K for the year ended December 31,\n2025 filed with the SEC on February 27, 2026 for other risk factors that\nyou should consider in connection with such forward-looking statements.\nInvestors are cautioned not to place undue reliance on forward-looking\nstatements, which speak only as of the date such statements have been made.\nExcept as required by law, CODI undertakes no public obligation to update any\nforward-looking statements to reflect events, circumstances, or new\ninformation after the date of this press release, or to reflect the occurrence\nof unanticipated events.\n\nCompass Diversified Investor Relations\nirinquiry@compassdiversified.com\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/40e4bf70-b3b0-4fa3-90d7-1e403fde3382)\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNX5hjlyt","title":"Compass Diversified Completes Sale of Sterno’s Food Service Business","author":"Globe Newswire","ticker":"CODI","created":"2026-05-04T11:15:00.103Z","tickers":["CODI"],"exchange":"NYSE","article_body":"WESTPORT, Conn., May 04, 2026 (GLOBE NEWSWIRE) -- Compass Diversified (NYSE:\nCODI) (“CODI” or the “Company”), an owner of leading middle-market\nbusinesses, today announced the completion, as of May 1, 2026, of the\nCompany’s previously announced sale of the food service business of its\nmajority-owned subsidiary, SternoCandleLamp Holdings, Inc. (“Sterno”), to\nArcher Foodservice Partners (“Archer”), a leading provider of foodservice\nconsumables and parent entity of companies Handgards, Inno-Pak, and Fineline\nSettings, and a portfolio company of Wynnchurch Capital, L.P.\n(“Wynnchurch”).\n\nThe sale price of Sterno’s food service business was based on an enterprise\nvalue of $292.5 million, subject to customary working capital and other\nadjustments. After these adjustments and the allocation to Sterno’s\nnon-controlling shareholders, CODI received approximately $280 million of\ntotal proceeds from the sale at closing.\n\nCODI plans to use net proceeds from the divestiture to repay outstanding\nsenior secured debt, which CODI expects to reduce its senior secured net\nleverage ratio to below 1.0x, thereby avoiding fees, as of June 30, 2026, tied\nto excess leverage under its senior secured indebtedness.\n\n“The closing of this transaction marks a meaningful step forward in our\nongoing deleveraging efforts,” said Elias Sabo, Chief Executive Officer of\nCompass Diversified. “We moved quickly to execute this sale at a favorable\nvaluation amidst a challenging macroeconomic backdrop. We are grateful to the\nSterno team for their many contributions and believe the food service business\nis well positioned for its next chapter with Archer.”\n\nRaymond James acted as financial advisor to Sterno. Brownstein Hyatt Farber\nSchreck, LLP acted as legal counsel to Sterno and CODI. Jefferies acted as\nfinancial advisor to CODI.\n\nAbout Compass Diversified (“CODI”)\n\nCODI leverages its permanent capital base and long-term disciplined approach,\nmaintaining controlling ownership interests in each of its subsidiaries and\nmaximizing its ability to impact long-term cash flow generation and value\ncreation. The Company provides both debt and equity capital for its\nsubsidiaries, contributing to their financial and operating flexibility. CODI\nutilizes the cash flows generated by its subsidiaries to invest in the\nlong-term growth of the Company and seeks to generate strong returns through\nits culture of transparency, alignment and accountability.\n\nForward Looking Statements\n\nThis press release contains forward-looking statements within the meaning of\nSection 27A of the Securities Act of 1933, as amended, and Section 21E of the\nSecurities Exchange Act of 1934, as amended, including without limitation,\nwith respect to the sale of Sterno and the future performance of Sterno and\nRimports. Such forward-looking statements may be identified by, among other\nthings, the use of forward-looking terminology such as “believe,”\n“expect,” “may,” “could,” “would,” “plan,” “intend,”\n“estimate,” “predict,” “future,” “potential,” “continue,”\n“should” or “anticipate” or the negative thereof or other variations\nthereon or comparable terminology, or by discussions of strategy that involve\nrisks and uncertainties. These statements are based on beliefs and assumptions\nby management, and on information currently available to management. These\nstatements involve risk and uncertainties that could cause actual results and\noutcomes to differ, perhaps materially, including but not limited to: the\nrisks to the Company’s financial condition associated with the fees that\nwill be incurred under its senior credit facility if leverage is not reduced\nas of the milestone dates set forth in the senior credit facility; and the\neffect of the announcement of the sale on the Rimports business or Rimport’s\nbusiness relationships, performance, and business generally. Please see\nCODI’s Annual Report on Form 10-K for the year ended December 31,\n2025 filed with the SEC on February 27, 2026 for other risk factors that\nyou should consider in connection with such forward-looking statements.\nInvestors are cautioned not to place undue reliance on forward-looking\nstatements, which speak only as of the date such statements have been made.\nExcept as required by law, CODI undertakes no public obligation to update any\nforward-looking statements to reflect events, circumstances, or new\ninformation after the date of this press release, or to reflect the occurrence\nof unanticipated events.\n\nCompass Diversified Investor Relations\nirinquiry@compassdiversified.com\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/40e4bf70-b3b0-4fa3-90d7-1e403fde3382)\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-05-04T11:15:00.154690827Z","server_sent_at_ms":1777893300154},"received_at":"2026-05-04T11:15:00.210Z","source_url":"https://www.globenewswire.com/news-release/2026/05/04/3286578/0/en/compass-diversified-completes-sale-of-sterno-s-food-service-business.html"},"analysis":{"id":"13596","press_release_id":"18784","analysis_json":{"industry":null,"redFlags":[],"eventType":"m_and_a","narrative":"Compass Diversified completed the sale of Sterno’s food service business to Archer Foodservice Partners for an enterprise value of $292.5 million. The transaction closed on May 1, 2026, concluding the divestiture of a majority-owned subsidiary's business unit.\n\nCODI received approximately $280 million in net proceeds after adjustments and allocations to non-controlling shareholders. The company intends to use the proceeds to repay outstanding senior secured debt.\n\nManagement expects the repayment to reduce the senior secured net leverage ratio to below 1.0x by June 30, 2026, thereby avoiding fees tied to excess leverage.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"CODI closes $292.5M Sterno divestiture, targets leverage below 1.0x with proceeds."},"keyFigures":{"dealValueUsd":292500000,"customDimensions":{"proceeds_to_codi":"$280 million","target_net_leverage":"below 1.0x","leverage_milestone_date":"June 30, 2026"}},"quotedText":"The closing of this transaction marks a meaningful step forward in our ongoing deleveraging efforts","namedEntities":{"people":[{"name":"Elias Sabo","role":"Chief Executive Officer"}],"products":["Sterno's food service business"],"companies":[{"name":"Compass Diversified","ticker":"CODI","relationship":"issuer"},{"name":"SternoCandleLamp Holdings, Inc.","relationship":"subsidiary"},{"name":"Archer Foodservice Partners","relationship":"buyer"},{"name":"Wynnchurch Capital, L.P.","relationship":"buyer parent"},{"name":"Raymond James","relationship":"financial advisor"},{"name":"Jefferies","relationship":"financial advisor"},{"name":"Brownstein Hyatt Farber Schreck, LLP","relationship":"legal counsel"}],"dollarAmounts":[{"amount":"$292.5 million","context":"enterprise value of Sterno's food service business"},{"amount":"$280 million","context":"total proceeds received by CODI at closing"}]},"materialImpact":{"score":5,"reasoning":"Completed divestiture of a non-core business (Sterno) for $292.5M enterprise value, generating ~$280M in proceeds to materially deleverage the balance sheet."},"tickerRelevance":{"others":[],"primary":"CODI"},"globalImportance":35,"audienceRelevance":25,"eventTypeSecondary":[],"importanceComponents":{"dealSize":"~$300M","tickerTier":"mid-cap","eventGravity":"completed-asset-sale"}},"event_type":"m_and_a","event_type_secondary":null,"sentiment":"bullish","material_impact_score":5,"narrative":"Compass Diversified completed the sale of Sterno’s food service business to Archer Foodservice Partners for an enterprise value of $292.5 million. The transaction closed on May 1, 2026, concluding the divestiture of a majority-owned subsidiary's business unit.\n\nCODI received approximately $280 million in net proceeds after adjustments and allocations to non-controlling shareholders. The company intends to use the proceeds to repay outstanding senior secured debt.\n\nManagement expects the repayment to reduce the senior secured net leverage ratio to below 1.0x by June 30, 2026, thereby avoiding fees tied to excess leverage.","key_figures":{"dealValueUsd":292500000,"customDimensions":{"proceeds_to_codi":"$280 million","target_net_leverage":"below 1.0x","leverage_milestone_date":"June 30, 2026"}},"named_entities":{"people":[{"name":"Elias Sabo","role":"Chief Executive Officer"}],"products":["Sterno's food service business"],"companies":[{"name":"Compass Diversified","ticker":"CODI","relationship":"issuer"},{"name":"SternoCandleLamp Holdings, Inc.","relationship":"subsidiary"},{"name":"Archer Foodservice Partners","relationship":"buyer"},{"name":"Wynnchurch Capital, L.P.","relationship":"buyer parent"},{"name":"Raymond James","relationship":"financial advisor"},{"name":"Jefferies","relationship":"financial advisor"},{"name":"Brownstein Hyatt Farber Schreck, LLP","relationship":"legal counsel"}],"dollarAmounts":[{"amount":"$292.5 million","context":"enterprise value of Sterno's food service business"},{"amount":"$280 million","context":"total proceeds received by CODI at closing"}]},"model_name":"glm-4.7","prompt_hash":"sha256:a2703c5a1b5285fe","schema_hash":"sha256:1f8af1196c7db48c","created_at":"2026-05-04T13:00:59.668Z","global_importance":35,"audience_relevance":25,"importance_components":{"dealSize":"~$300M","tickerTier":"mid-cap","eventGravity":"completed-asset-sale"}},"durationMs":120934,"modelName":"glm-4.7"}}