American Furniture Sold

October 6, 2015  by in Acquisition, Industry   

Compass Diversified Holdings (NYSE: CODI) said it has sold the division to a private investor group, including members of the American Furniture management team.

After the payment of all of the transaction expenses, Compass Diversified received about $23.5 million of proceeds from the sale at closing. This amount was in respect of its debt and equity interests in American Furniture and the payment of accrued interest and fees.

Compass Diversified bought American Furniture in 2007 for about $93 million. The company plans to record a $14 million loss on the sale. Proceeds will enhance the Company's liquidity and strengthen its balance sheet.

"Over the past several years, we have worked closely with the new management team of American Furniture and deeply appreciate their effort and professionalism in successfully implementing a turnaround amid a challenging industry environment," said Alan Offenberg, CEO of Compass Diversified. "We wish the company continued success in the future."