Compass Diversified Holdings Inc. no longer controls a majority of the common shares of Fox Factory Holding Co. (FOXF), a California manufacturer of suspension products for mountain bikes and power sports vehicles.
Compass Diversified (CODI) sold 4,466,569 shares of FOXF common stock in a public offering, including 633,955 shares sold in connection with underwriters' exercise of the over-allotment option, for total net proceeds of approximately $65.5 million. Upon completion of the offering, CODI's ownership in FOXF was lowered from approximately 53 percent to 41 percent, or 15,108,718 shares of FOXF's common stock.
"With this transaction, we have further strengthened our financial liquidity and increased the total gains realized from monetizing interests in our subsidiaries,” said Alan Offenberg, CEO for CODI, which also owns controlling stakes in CamelBak, ErgoBABY and Liberty Safe. “As a result of this sale, the company anticipates deconsolidating FOX which is consistent with our intention to streamline CODI's consolidated financial reporting. We continue to be the largest shareholder of FOX and remain excited by the company's future growth prospects."
CODI owns and manages a diverse family of established North American middle market businesses, including:
CamelBak Products, which designs and manufactures personal hydration products for outdoor, recreation and military use; Ergobbaby, which designs and markets wearable baby carriers, strollers and related products; and Liberty Safe, which designs and manufactures premium home and gun safes.
Fox Factory Holdings Inc. designs and manufactures high-performance suspension products primarily for mountain bikes, side-by-side vehicles, on-road and off-road vehicles and trucks, all-terrain vehicles, snowmobiles, specialty vehicles and applications, and motorcycles
