Strategic Acquisition: Altor Solutions Expands Portfolio with Lifoam
Altor Solutions Completes the Acquisition of Lifoam Industries
Compass Diversified (NYSE: CODI) has exciting news as Altor Solutions, its subsidiary based in St. Louis, has successfully finalized the acquisition of Lifoam Industries. This acquisition marks a significant milestone for Altor Solutions, enhancing its capabilities in providing custom protective and cold-chain packaging solutions designed for the industrial and life sciences sectors.
Details of the Acquisition
With an enterprise value of $137 million, this deal excludes working capital and certain adjustments. The agreement, reached earlier in the year, reflects a strategic move to increase Altor's infrastructure and technological expertise in cold-chain solutions. Altor and Lifoam will work in tandem to enhance customer service and expand their market reach.
An Overview of Lifoam Industries
Lifoam Industries, established in 1954, has made a name for itself as a leading manufacturer of temperature-controlled packaging products. Their offerings, which include thermal shippers and refrigerant gel packs, cater to the healthcare, commercial, and retail industries. The company operates seven technologically advanced manufacturing and distribution facilities across the United States, focusing on environmental sustainability through innovative packaging alternatives.
Statements from Leadership
Terry Moody, CEO of Altor Solutions, expressed enthusiasm about the acquisition, stating, "The addition of Lifoam amplifies our market presence and enhances our cold-chain technology capabilities. We are excited about the future growth opportunities that lie ahead for both Altor and Lifoam."
Similarly, Elias Sabo, the CEO of Compass Diversified, welcomed Lifoam to the CODI team, highlighting how this acquisition significantly progresses Altor’s long-term strategy and strengthens their offerings to meet evolving customer needs. His vision for the combined entities marries innovation with strategic growth, ensuring both companies thrive in their respective markets.
About Altor Solutions and Its Vision
Founded in 1957, Altor Solutions thrives as an engineering-focused innovator in protective packaging and cold-chain solutions tailored for life sciences and perishable goods. It operates 16 advanced facilities globally and emphasizes sustainability by offering a mix of traditional and plant-based materials. Altor's commitment to excellence positions it strongly within the competitive landscape of industrial packaging.
Lifoam’s Commitment to Sustainability
Lifoam is dedicated to not just providing temperature-controlled packaging but doing so with an eye on sustainability. With a robust range of products including EPS coolers and innovative packaging solutions, the company aims to minimize ecological impact while meeting the diverse needs of markets such as healthcare and retail. Their cutting-edge facilities support efficient production and distribution, solidifying Lifoam’s reputable standing in the industry.
Compass Diversified's Strategic Approach
Since its IPO in 2006, Compass Diversified has remained committed to a clear strategy: owning and managing a varied portfolio of middle-market businesses. Their approach incorporates a solid capital infrastructure which allows them to make informed investments and support their subsidiaries in maximizing long-term cash flow and value creation. With a focus on various sectors, including industrial and branded consumer markets, CODI aims to achieve sustainable growth through strategic acquisitions such as that of Lifoam.
Frequently Asked Questions
What is the significance of Altor's acquisition of Lifoam?
This acquisition allows Altor to expand its market reach and enhance its offerings in cold-chain packaging solutions.
How much was Lifoam acquired for?
Altor Solutions completed the acquisition of Lifoam Industries with an enterprise value of $137 million.
What products does Lifoam specialize in?
Lifoam manufactures temperature-controlled packaging products including thermal shippers and refrigerant gel packs for various industries.
What is the history of Altor Solutions?
Altor Solutions was founded in 1957 and specializes in industrial protective packaging and cold-chain solutions.
What markets do Altor and Lifoam cater to?
Both companies cater primarily to the life sciences sector, alongside commercial and retail markets.
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