Compass Diversified Holdings (CODI) Agrees to Purchase the ERGO Baby Carrier, Inc.
Compass Diversified Holdings announced an agreement to purchase The ERGO Baby Carrier, Inc., a designer and marketer of products and accessories for babies. Compass Diversified Holdings reported that the enterprise value of the transaction, which includes consideration paid and assumption of debt, was $91 million. The company reported that this was approximately seven times the estimated EBITDA for The ERGO Baby Carrier, Inc., in 2010. Compass Diversified Holdings has elected to classify the purchase under Section 338 (h) (10) of the Internal Revenue Code. This allows the company to amortize the cost of the purchase over several years. Compass Diversified…