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Compass Diversified's ERGObaby Closes USD 73.8m Acquisition of New Baby Tula.


12 May 2016 - US-based middle market business owner Compass Diversified Holdings's (NYSE: CODI) The ERGObaby Carrier, Inc. subsidiary has closed the acquisition of US-based baby carrier manufacturer New Baby Tula LLC for a purchase price of USD 73.8m, the company said.

This price excludes working capital and a potential earn-out payment of USD 8.2m based on 2017 financial performance.

Baby Tula was founded in 2009 and makes premium baby carriers, toddler carriers, slings, blankets and wraps that comfortably and ergonomically support the bond between parent and child.

The company has a strong direct channel presence with growing international distribution relationships. It sells to retailers and consumers in more than 70 countries worldwide, including the US, Canada and Australia.

For the fiscal year ended 31 December2015, Baby Tula reported net revenue of approximately USD 24.8 m and EBITDA of approximately USD 13.1m.

CODI expects to fund the purchase price through available cash on its balance sheet and a draw on its revolving credit facility.

Baby Tula will become a wholly owned subsidiary of ERGObaby and continue to be led by co-founders Ula Tuszewicka and Mike Pham.

Each brand will continue to design and manufacture products under their current brand names and operate their businesses from San Diego and Los Angeles, respectively. Margaret Hardin remains the CEO of ERGObaby and its subsidiaries.

Compass Diversified Holdings CODI owns and manages North American middle market businesses.

Country: USA

Sector: Consumer Products

Target: New Baby Tula LLC

Buyer: The ERGObaby Carrier, Inc


Deal size in USD: 73.8m

Type: Corporate Acquisition

Financing: Cash

Status: Closed

Buyer advisor: , ,


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Publication:M & A Navigator
Date:May 12, 2016
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