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Compass Diversified to Sell Sterno Food-Service Unit to Archer for $292.5 Million

The move targets rapid deleveraging to meet credit milestones.

Overview

  • Compass Diversified said Monday it signed a definitive deal to sell Sterno’s food-service business to Archer Foodservice Partners.
  • The sale values the unit at $292.5 million and follows 2025 subsidiary adjusted EBITDA of about $30.3 million.
  • The deal is expected to close in May 2026, pending customary conditions and regulatory approvals.
  • CODI plans to use the proceeds to repay senior secured debt and expects its senior secured net leverage ratio to drop below 1.0x after closing.
  • The company will keep Sterno’s home fragrance arm under the Rimports name, while Archer adds the food-service unit to a platform that includes Handgards, Inno-Pak, and Fineline Settings.