WESTPORT, Conn. (AP) — Investment firm Compass Diversified Holdings is buying CamelBak Products LLC, a maker of reusable water bottles, military gloves and other goods, for $257.5 million.
Compass CEO Alan Offenberg said in a statement that CamelBak has strong brand recognition and hopes to capitalize on increasing demand for its hydration products.
CamelBak, which is based in Petaluma, Calif., sells its products in more than 50 countries.
Compass, which invests in midsized businesses, said Thursday that it financed the transaction by drawing on its revolving credit agreement and by using funds from a private placement of 1.6 million shares. The company now owns about 89.9 percent of CamelBak Acquisition Corp., a subsidiary of CamelBak Products.
Acquisition-related costs totaled about $4.2 million.
Compass also provided $145.2 million in loans to CamelBak as part of the deal. With the acquisition, the Westport, Conn., investment firm said it now owns nine businesses. Some of its other holdings include Liberty Safe, a maker of home safes; American Furniture Manufacturing; and Ergo Baby Carrier Inc.
Its stock added 7 cents to $12.80 in midday trading.