WESTPORT, Conn., Feb. 15, 2023 (GLOBE NEWSWIRE) -- Compass Diversified (NYSE: CODI) (“CODI” or the “Company”), an owner of leading middle market businesses, today announced the completion of the Company’s previously announced sale of its majority owned subsidiary, Compass AC Holdings, Inc., the parent company of Advanced Circuits, Inc. (“Advanced Circuits” or “the Company”), to APCT, Inc. (“APCT”), a leading manufacturer of high reliability printed circuit boards, and portfolio company of Industrial Growth Partners.

The sale price was based on an enterprise value of $220 million plus estimated cash and working capital adjustments subject to customary post-closing true-ups. After these adjustments, as well as for an allocation to ACI’s non-controlling shareholders and the payment of transaction expenses, CODI received approximately $170 million of total proceeds from the sale at closing. This amount was in respect of its debt and equity interests in ACI and the payment of accrued interest. As previously announced, CODI expects to record a pre-tax gain of approximately $100 million to $110 million from the sale. Net proceeds will be used to pay off outstanding revolver borrowings.

Elias Sabo, CEO of Compass Diversified, stated, “We are deeply proud of our partnership and success with John and Jeff Yacoub, which started more than sixteen years ago. CODI’s permanent capital structure and support throughout this partnership has generated significant value for our shareholders, and we are grateful for the Advanced Circuit team’s contributions and look forward to their continued success.”

Jefferies LLC acted as exclusive financial advisor and Ropes & Gray LLP acted as legal counsel to CODI. Kirkland & Ellis LLP acted as legal counsel to APCT.

About Compass Diversified

Since its founding in 1998, CODI has consistently executed on its strategy of owning and managing a diverse set of highly defensible, middle-market businesses across the niche industrial, branded consumer and healthcare sectors. The Company leverages its permanent capital base, long-term disciplined approach, and actionable expertise to maintain controlling ownership interests in each of its subsidiaries, maximizing its ability to impact long-term cash flow generation and value creation. The Company provides both debt and equity capital for its subsidiaries, contributing to their financial and operating flexibility. CODI utilizes the cash flows generated by its subsidiaries to invest in the long-term growth of the Company and has consistently generated strong returns through its culture of transparency, alignment and accountability. For more information, please visit compassdiversified.com.

Current Holdings：

About Advanced Circuits

Since 1989, With over 10,000 active customers， Advanced Circuits (also known in the industry as 4PCB) has been the leading the PCB industry as a quick turn manufacturer specializing in both small quantity PCBs and production quantities.  Advanced Circuits operates divisions in Aurora, CO, Chandler, AZ, and Maple Grove, MN and is ranked among the 3rd largest circuit board fabricators in North America.  Advanced Circuits is MIL-PRF-31032, MIL-PRF-55110G, AS9100C, ISO 9001:2008 Certified, IPC 6012 Class 2, 3 and 3A Qualified, as well as ITAR Registered.  They serve diverse industries that depend on their high quality printed circuit boards, delivered on-time. Their customers rely on them for the PCBs they need for military, aerospace, defense, medical and many more critical applications. Advanced Circuits is  one of the few PCB suppliers that is able to manufacture for DOD Contracts in the United States.

About APCT

APCT President / CEO, Steve Robinson, has been in the printed circuit board industry since 1971. After years of working as a top executive with a large global manufacturer of PCBs, he found that the culture there did not match his own values and decided to “get back to basics.”

In 2008, he acquired Advanced Printed Circuit Technology and formed the APCT we know today. Through acquisition, APCT is now one of the largest printed circuit board manufacturers in North America.

APCT is headquartered in Santa Clara, California, in the heart of the Silicon Valley. The company features four total manufacturing sites: Santa Clara, two in Southern California and one in Wallingford, Connecticut. Currently, the company has 180,000 sq. ft. of manufacturing space with over 500 employees.

The Categories of Technology：APCT has divided the technology world into Standard, Advanced, and Development. There are many attributes responsible for determining which category a board is placed. However, for the purposes of this overview, the following are offered:

⑴.Standard Technology：①.Through-Hole Technology up to 28 layers；②.HDI Technology up to 3 lamination cycles；③.Flex Technology up to 6 layers；④.Rigid Flex Technology up to 14 layers

⑵.Advanced Technology：①.Through-Hole Technology up to 38 layers；②.HDI Technology up to 5 lamination cycles；③.Flex Technology up to 10 layers；④.Rigid Flex Technology up to 24 layers

⑶.Development Technology：①.Through-Hole Technology up to 40+ layers；②.HDI Technology up to 7+ lamination cycles；③.Flex Technology up to 12+ layers；④.Rigid Flex Technology up to 26+ layers