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Compass Diversified Holdings Message Board

  • jan31 jan31 May 2, 2012 8:46 AM Flag

    HALO sale

    Using the money to pay down rotating debt and increase cash. Cash to be used for further acquisitions and growing current companies.

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    • The sale appears to be a wash.

      • 1 Reply to roger29palms
      • I agree that the sale looks like a wash but to me it's a welcome one. CODI seems to be looking to more specialized products/manufacturing these days rather than just looking at cash flow etc. Selling staffing and promotional and picking up baby carriers,gun safes,hydration products, and especially rare earth magnets represents quite a shift in emphasis to me. When furniture is sold off or given away I'll be even more pleased. The circuit board operation is doing surprisingly well IMO, and FOX SHOX could do a LOT better were it moved from high price/high tax California to Texas.. Note that Halo is based in Illinois..getting out of that state with its' horrble financial situation is a marvelous move.

    • (That was my third attempt to post-Yahoo didn't like something in the release.)

      "The transaction is subject to customary escrow and working capital provisions. After these adjustments, as well as for an allocation to HALO's non-controlling shareholders and the payment of all of the transaction expenses, CODI received approximately $66.4 million of total proceeds from the sale at closing. This amount was in respect of its debt and equity interests in HALO, which was acquired by CODI on February 28, 2007, and the payment of accrued interest and fees. The proceeds were used to repay outstanding debt under the Company's revolving credit facility. CODI anticipates that its portion of the proceeds from the sale will approximate its book carrying amount for HALO and as a result no significant gain or loss for this transaction will be recorded for the quarter ended June 30, 2012."

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