Compass Diversified to sell Sterno's food service business for $292.5M; proceeds to cut debt

Compass Group Diversified Holdings LLC

Enterprise value $292.5M; buyer is Archer Foodservice Partners (Wynnchurch portfolio).
Net proceeds used to repay senior debt; expects senior secured net leverage below 1.0x.
Retains Sterno's home fragrance business (Rimports); expected close in May 2026.
Sterno's food service business generated ~$30.3M subsidiary adjusted EBITDA in 2025.
Transaction avoids leverage fees beyond June 30, 2026; CEO cites commitment to delever.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Compass Group Diversified Holdings LLC entered into Agreement and Plan of Merger with WCHG Buyer, Inc. valued at enterprise value of $292.5 million (effective 2026-03-28).

Action: entry
Agreement: merger
Counterparty: WCHG Buyer, Inc.
Value: enterprise value of $292.5 million
Effective: 2026-03-28

Exact text from the filing

On March 28, 2026, the Company, in its capacity as the representative (the “Stockholder Representative”) of the holders (the “Stockholders”) of common stock of SternoCandleLamp Holdings, Inc. (“Sterno”), a majority owned subsidiary of the Company, and for the limited purposes of the Rimports Distribution (as defined below), entered into a definitive Agreement and Plan of Merger (the “Agreement”) with WCHG Buyer, Inc. (“Parent”), WCHG Heat Merger Sub, Inc. (“Merger Sub”) and Sterno

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Source: SEC EDGAR

accession 0001345126-26-000030

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