Compass Diversified Holdings buys CamelBak Products

PETALUMA, Calif. ― Compass Diversified Holdings, which acquires controlling interests in companies, said it bought privately-owned CamelBak Products LLC in a deal for $257.5 million to improve its ability to provide cash distributions to its owners.

Compass said based CamelBak, which makes personal hydration backpacks used by sportsmen and the military, would add 15-20 cents to its cash flow on a full-year basis.

Compass will initially own 89.9 percent of CamelBak’s common equity.

Compass uses the cash flows generated by its subsidiaries to invest in long-term growth and to make cash distributions to its owners.Compass said the acquisition was made through a majority-owned subsidiary, CamelBak Acquisition Corp.

The acquisition is the ninth subsidiary to be owned by Compass. Its other holdings include American Furniture Manufacturing, wound-treatment device maker Tridien Medical and mountain bike suspension maker Fox Racing Shox.

Shares of Compass closed at $12.73 on Wednesday on the New York Stock Exchange.