Compass Diversified to Acquire PrimaLoft from Victor Capital Partners in $530m Deal

Compass Diversified Holdings has agreed to buy PrimaLoft Inc. in a transaction valuing the provider of synthetic insulation at about $530m, including debt, according to a press release reviewed by Bloomberg News.

The transaction is expected to close in July, the press release showed. PrimaLoft is owned by private equity firm Victor Capital Partners.

Latham, New York-based PrimaLoft provides materials to produce synthetic down jackets and its customers include Nike Inc., Patagonia and Canada Goose Holdings Inc. Founded in 1983, the company was started to create an alternative to goose down for the US Army.

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In over 70% of PrimaLoft’s products, more than half of the materials are comprised of post-consumer recycled content as of 2019, according to its website. The company turns plastic bottles into synthetic fibers.

“Sustainability is such a big driver behind consumers today,” Compass Diversified Chief Executive Officer Elias Sabo said in an interview. Apparel makers are increasingly prioritizing ESG as consumers are more aware of animal rights and social, environmental impacts, he added.

Compass Diversified is an investment company with permanent capital that specializes in mid-size industrial and consumer-related businesses. It has a market value of about $1.6 billion.

Source: BNN Bloomberg

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