Compass Diversified Completes $292.5 Million Sale of Sterno Food Service Business
Compass Diversified closed the sale of SternoCandleLamp’s food service business to Archer Foodservice Partners on May 1, valuing the unit at $292.5 million and generating $280 million in net proceeds. CODI will use the proceeds to repay senior secured debt, targeting a net leverage ratio below 1.0x by June 30.
1. Completion of Sterno Food Service Sale
On May 1, 2026, CODI completed the sale of SternoCandleLamp’s food service business to Archer Foodservice Partners for an enterprise value of $292.5 million, resulting in approximately $280 million in net proceeds after customary adjustments.
2. Debt Repayment and Leverage Reduction
CODI plans to apply the net proceeds toward repaying outstanding senior secured debt, which is expected to lower its senior secured net leverage ratio below 1.0x by June 30, 2026, thereby avoiding excess leverage fees under its credit facility.
3. Strategic Outlook for CODI
Management views this transaction as a key step in its deleveraging strategy, enhancing financial flexibility to support future investments, while positioning Sterno’s food service business for growth under its new owner.