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June 8, 2022

Primaloft to be sold for $530m to Compass Diversified

Private equity firm Victor Capital Partners is to sell performance fabric specialist PrimaLoft to Compass Diversified (CODI) for an enterprise value of US$530m.

By Beth Wright

Compass Diversified (CODI) has entered into a definitive agreement to acquire the equity of PrimaLoft Technologies Holdings, Inc, the parent company of PrimaLoft, Inc, a provider of branded, high-performance synthetic insulation and materials used primarily in consumer outerwear, and accessories.

Based in Latham, New York, PrimaLoft was established in 1983 by Albany International Corporation in response to a US Army request to develop a synthetic insulation for soldiers that replicated the warmth and weight characteristics of traditional goose down, but also remained warm when wet.

In addition to maintaining high performance in wet conditions, the portfolio of PrimaLoft synthetic insulations offers products that can both mimic natural down aesthetics and provide the freedom to design garments ranging from puffers to lightweight performance apparel. PrimaLoft insulations also offer sustainability characteristics through the use of recycled, low-carbon inputs.

Today, PrimaLoft is said to serve over 950 active brand partners, including Patagonia, Nike, Stio, La Sportiva, Polo Ralph Lauren, Helly Hansen, Marmot, Moncler, and Canada Goose.

Victor Capital acquired a majority interest in PrimaLoft in 2017 in partnership with the management team, which maintained a significant investment in the business. 

“PrimaLoft has all the attributes we look for in an acquisition and once closed, will add to CODI’s track record of acquiring industry-leading, innovative businesses with strong competitive advantages,” says Elias Sabo, CEO of Compass Diversified. “PrimaLoft is a market leader and possesses significant intellectual property, operates in a large, growing addressable market, and has a world-class management team led by Mike Joyce. In addition, PrimaLoft is a high growth and high free cash flow generating business that operates at the forefront of sustainability and is fully aligned with CODI’s mission of conducting our business in a responsible and ethical manner while delivering superior investment results.”

Mike Joyce, president and CEO of PrimaLoft, adds: “I am incredibly proud of PrimaLoft’s success with Victor Capital Partners and am thrilled to be partnering with CODI, who shares our commitment to building a sustainable future through innovation. We believe PrimaLoft is well-positioned to continue its purpose to unleash the full potential of people, products, and planet, as we address the need for sustainable product innovations in the apparel industry, and beyond. We have built enduring partnerships with key customers through our ability to consistently deliver innovative products that elevate sustainability and performance, and we look forward to leveraging CODI’s world-class platform to continue to push the synthetic materials market forward.”

The acquisition is expected to close in July, subject to customary closing conditions.

Following the close of the transaction, PrimaLoft will continue to be led by its current leadership team.

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