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Mergers & Acquisitions

Victor Exits PrimaLoft to Compass Diversified

Published: June 13th, 2022
The $530 million sale comes after The Deal reported in May that the maker of insulated fibers had hired Baird and William Blair to run an auction.

Victor Capital Partners LLC announced Monday, June 6, it had agreed to sell synthetic fibers and insulation maker PrimaLoft Inc. to Compass Diversified Holdings Inc. (CODI) for $530 million.

The sale comes after The Deal reported in early May that the company had hired Robert W. Baird & Co. and William Blair & Co. LLC for an auction. The company, which is also backed by Allstate Investments LLC, a subsidiary of insurance firm Allstate Corp. (ALL), has approximately $32 million in Ebitda, according to a source familiar with the matter, implying a 16.5 times Ebitda multiple for the target.

PrimaLoft’s insulating fibers are used in outdoor apparel made by companies such as Patagonia Inc., Nike Inc. (NKE), Ralph Lauren Corp. (RL), VF Corp.’s (VF) North Face Apparel Corp., L.L.Bean Inc. and others.

William Blair and Baird ran a limited process that primarily included financial sponsors and a small number of strategic buyers, the source said.

“There was a good level of interest across different categories of prospective buyers for the business, which is fundamentally strong, is experiencing rapid growth and has a very diverse customer base, a defined mission and a powerful sustainability story,” Victor Capital managing partner Douglas Korn told The Deal.

Westport, Conn.-based Compass, a holding company for middle market consumer and industrial businesses, owns another brand similar to PrimaLoft, Boa Technology Inc. , which makes footwear components for a better fit depending on the outdoor activity such as hiking, mountaineering, biking, snowboarding and more. Boa partners with brands including Adidas AG and Under Armour Inc. (UA).

Latham, N.Y.-based PrimaLoft looked to William Blair for financial advice along with Baird. A Blank Rome LLP team was counsel to the seller.

The buyer looked to a Jefferies LLC team for financial advice. A Gibson, Dunn & Crutcher LLP team provided legal counsel.

Victor Capital and Allstate paid an undisclosed sum to purchase PrimaLoft from Prudential Capital Partners LP in October 2017. The firms added $64 million to the target’s balance sheet to pay for the deal, including $48 million in senior debt and $16 million in mezzanine debt. The financing was obtained from private lenders Madison Capital Funding LLC, Antares Capital Corp. and Intermediate Capital Group plc.

Compass Diversified hopes to close the deal in July.

—Tom Terrarosa contributed to this report

Editor’s note: The original version of this article, with individual advisers, was published earlier on The Deal’s premium subscription website. For access, log in to or use the form below to request a free trial.

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