Compass Diversified active on news of public offering
Compass Diversified Trust (Nasdaq: CODI) inched upward this morning on unusually heavy volume after the firm announced the pricing of a follow-on public offering of 8 million shares at $16 a share.
Compass Group Investments Inc., through a wholly owned subsidiary, has agreed to purchase 1.875 million shares in a separate private placement transaction at a per share price equal to the follow-on public offering price for a total of $30 million.
The transaction is expected to close in conjunction with the closing of the public offering.
Westport, Conn.-based Compass Diversified was formed to acquire and manage middle market businesses that are headquartered in the United States. The firm plans to use the net proceeds from the offering to repay debt under its revolving credit facility and any remaining amounts for general corporate purposes.
Compass Diversified currently owns six businesses, including a human resources outsourcing firm, an electronic components manufacturer, a global chemical hardcoatings manufacturer, a designer and manufacturer of industrial drying and cooling equipment and a distributor of customized promotional products.
Shares of the company’s stock were up by $0.08, or 0.5%, to $16.09 this morning. It has traded between $12.79 (on July 21, 2006) and $18.46 (on Jan. 4) in the past year.
Volume was heavy – nearly 2 million shares had changed hands by 10:24 am, compared with an average three-month daily volume of 63,417 shares.
