Mar. 30 at 4:47 PM
Compass Diversified announced a definitive agreement to sell the foodservice business of its majority-owned subsidiary Sterno for
$292.5 million. Archer Foodservice Partners will acquire the business at an enterprise value of
$292.5 million, subject to customary working capital and other adjustments. The subsidiary generated an adjusted EBITDA of approximately
$30.3 million in 2025, including certain shared overhead costs that will remain post-transaction.
Proceeds from the sale will be used to pay down outstanding debt. After closing and the planned early repayment of senior secured debt, Compass expects its senior secured net leverage ratio to fall below 1.0x, avoiding excess leverage fees under its senior secured debt beyond June 30, 2026.
Compass will retain Sterno’s home fragrance business, which will continue operating under the name Rimports. Based in Provo, Utah, Rimports manufactures and distributes branded and private-label home fragrance products.
$CODI