PrimaLoft to be acquired by owners of BOA and Lizard Skins

Compass Diversified has announced that it has entered into a definitive agreement to acquire the equity of PrimaLoft Technologies Holdings, Inc., the parent company of PrimaLoft, a leading provider of high-performance synthetic insulation and materials, for an enterprise value of $530 million (excluding working capital and certain other adjustments upon closing).

The acquisition is expected to close in July, subject to customary closing conditions. Following the close of the transaction, PrimaLoft will continue to be led by its current leadership team.

Established in 1983 by Albany International Corporation, PrimaLoft came in to being as a response to a U.S. Army request to develop a synthetic insulation for soldiers that replicated the warmth and weight characteristics of traditional goose down, but also remained warm when wet.

Today PrimaLoft insulations also enable better sustainability characteristics through the use of recycled, low-carbon inputs.

As a technology leader with over 90 global patents, along with process trade secrets, PrimaLoft serves over 950 active brand partners, including Patagonia, Nike, La Sportiva, Helly Hansen, and Marmot, with cycling brands including Endura using PrimaLoft insulation in a variety of MTB and Road applications.

The business creates and delivers high-performance products while reducing impact on the environment. To this end, PrimaLoft reports it has:

• Diverted 614 million plastic bottles from landfills since 2015
• Pioneered biodegradable and carbon-negative fibre polymers
• Reduced emissions by up to 70% for its proprietary line of insulations made with P.U.R.E. manufacturing technology.

“PrimaLoft has all the attributes we look for in an acquisition and once closed, will add to CODI’s track record of acquiring industry-leading, innovative businesses with strong competitive advantages,” said Elias Sabo, CEO of Compass Diversified.

“PrimaLoft is a market leader and possesses significant intellectual property … a high growth and high free cash flow generating business that operates at the forefront of sustainability and is fully aligned with CODI’s mission of conducting our business in a responsible and ethical manner while delivering superior investment results.”

Mike Joyce, President and CEO of PrimaLoft, commented: “I am incredibly proud of PrimaLoft’s success with Victor Capital Partners and am thrilled to be partnering with CODI, who shares our commitment to building a sustainable future through innovation.”

“We believe the business is well-positioned … as we address the need for sustainable product innovations in the apparel industry, and beyond. We have built enduring partnerships with key customers through our ability to consistently deliver innovative products that elevate sustainability and performance, and we look forward to leveraging CODI’s world-class platform to continue to push the synthetic materials market forward.”