WESTPORT, Conn., Nov. 21, 2011 /PRNewswire/ -- Compass Diversified Holdings (NYSE: CODI) ("CODI"), an owner of leading middle market businesses, announced today that its subsidiary, The ERGObaby Carrier, Inc. ("ERGObaby"), has acquired Orbit Baby, Inc. ("Orbit Baby") for a purchase price of $17.5 million.
Founded in 2004 and based in Newark, California, Orbit Baby produces and markets a premium line of stroller travel systems. Orbit Baby's high-quality products include car seats, strollers and bassinets that are easily interchangeable using a patented hub ring. Orbit Baby has established a reputation for designing ergonomic and innovative products, which are currently available throughout the United States and abroad. With this acquisition, ERGObaby would have reported pro forma combined revenue of approximately $53 million for the twelve months ended September 30, 2011. The purchase price was funded with $15 million in cash from CODI's balance sheet and from the issuance of $2.5 million in ERGObaby equity.
Commenting on the transaction, Alan Offenberg, CEO of CODI, said, "Since acquiring ERGObaby in September 2010, we have made significant investments aimed at strengthening its future prospects and expanding its leadership position in the child mobility and transport product category. The accretive add-on acquisition of Orbit Baby is consistent with these important objectives as we remain focused on utilizing our balance sheet strength to capitalize on favorable growth opportunities."
Tim Bruer, CEO of ERGObaby, stated, "This attractive acquisition provides a great opportunity to further our rapid growth in the Baby Durables market. With this complementary line of advanced stroller travel systems, we intend to further expand our distribution levels in the U.S. and internationally. We look forward to seamlessly integrating our operations and working closely with Orbit Baby's management to drive future performance."Joseph Hei and Bryan White, co-founders of Orbit Baby, will continue to serve in senior management roles. "We are excited to join the ERGObaby family," said Mr. Hei. "As the fastest growing brand for baby carriers backed by CODI's financing structure, ERGObaby provides an ideal fit as we grow our ability to bring world-class safety, convenience and design to solutions for taking children on the go." About ERGObaby Founded in 2003, ERGObaby is a premier designer, marketer and distributor of hands-free baby carriers and related products on a worldwide basis for all babies, from newborn to toddler. ERGObaby's strong track record in product innovation, reliability and safety has led to numerous awards and accolades from consumer surveys and publications, including Parenting Magazine, Pregnancy Magazine and Wired Magazine. ERGObaby offers a broad range of environmentally conscious babywearing products and accessories that are sold through more than 700 retailers and web shops in the United States and internationally in approximately 30 countries. To learn more, please visit ERGObaby's website, www.ergobaby.com. About Compass Diversified Holdings ("CODI") Compass Diversified Holdings ("CODI") owns and manages a diverse family of established North American middle market businesses. Each of its eight subsidiaries is a leader in their niche market.