Compass Diversified-Backed Marucci Sports Announces Acquisition of Lizard Skins: Strengthens Marucci’s Leading Position in Diamond Sports and Enables Expansion into New Markets
FOR IMMEDIATE RELEASE
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Compass Diversified-Backed Marucci Sports Announces Acquisition of Lizard Skins
Strengthens Marucci’s Leading Position in Diamond Sports and Enables Expansion into New Markets
BATON ROUGE, La. – October 25, 2021 – Marucci Sports, LLC (“Marucci”), a subsidiary of Compass Diversified (NYSE: CODI) and a leading designer and manufacturer of baseball and softball equipment and apparel, today announced it has acquired Lizard Skins LLC (“Lizard Skins”), a designer and seller of branded grip products, protective equipment, bags and apparel for use in baseball, cycling, hockey, Esports and lacrosse. Terms of the transaction were not disclosed.
With the acquisition of Lizard Skins, Marucci is positioned to build on its leading position in diamond sports while simultaneously developing the company’s presence in new sports markets such as hockey and cycling. Founded in 1993 with a focus on designing products to protect bicycles and riders, Lizard Skins has since expanded to a range of sports and has leveraged its leading technology to become the official bat grip of Major League Baseball, the grip of choice for various pro cycling teams, and its DSP hockey grip tape is a licensed product of the National Hockey League. Lizard Skins’ leadership team, including its founder Brian Fruit, are expected to continue leading the brand as part of Marucci.
“Adding Lizard Skins’ outstanding products to the Marucci family is a terrific opportunity to enhance our offerings,” said Kurt Ainsworth, CEO of Marucci. “With its exciting brand, innovative designs, and leading technology, Lizard Skins has earned the trust of top athletes, and its strong presence both inside and outside the diamond sports market makes this an exciting partnership. We look forward to welcoming Brian and his team aboard.”
“We are thrilled to take this step forward in our growth as a company and become part of the incredible Marucci team,” said Brian Fruit, President and CEO of Lizard Skins. “Our success is a product of our unwavering focus on the demands of elite athletes, and Marucci shares our total commitment to meeting the needs of those customers. I am confident that with support of CODI and Marucci’s resources, we will better be able to provide our athletes the top-of-the-line equipment they need to succeed against all competition. I am excited to continue the Lizard Skins mission to develop, expand and improve equipment for our customers.”
Elias Sabo, CEO of CODI, added: “Our team at CODI prides itself on being business builders, having completed nearly 30 add-on transactions for our subsidiaries since our inception. We are excited to add to our long history of investing in our subsidiaries and bring these two leading companies together. As proven brands that have established themselves as equipment providers of choice for top-performing athletes, Marucci and Lizard Skins are ideally situated to join forces and deliver a broader, more diverse range of products. We are proud that our permanent capital advantage has once again enabled us to invest in the future of our subsidiary, and we are confident that Marucci is well-positioned to generate long-term value for all its stakeholders, including its athletes and our shareholders.”
Founded in 2009, Marucci Sports is a leading manufacturer and distributor of baseball and softball equipment under the Marucci and Victus brands, headquartered in Baton Rouge, Louisiana. Marucci’s product portfolio includes wood and metal bats, apparel and accessories, batting and fielding gloves, and bags and protective gear. Today, Marucci and Victus are the top two most-used bats among Big League players.
About Lizard Skins
Lizard Skins is an industry leading provider of sporting goods accessories that revolve around the hand-to-grip interface. Its products are used at the highest levels of competition by athletes in the Tour de France, Major League Baseball, National Hockey League, National Lacrosse League and even gaming. Lizard Skins is headquartered in American Fork, Utah.
About Compass Diversified (“CODI”)
CODI owns and manages a diverse set of highly defensible North American middle market businesses. Each of its current subsidiaries is a leader in its niche market.
Leveraging its permanent capital base, long-term disciplined approach and actionable expertise, CODI maintains controlling ownership interests in each of its subsidiaries, maximizing its ability to impact long-term cash flow generation and value creation. CODI provides both debt and equity capital for its subsidiaries, contributing to their financial and operating flexibility. CODI utilizes the cash flows generated by its subsidiaries to invest in its long-term growth and has consistently generated strong returns through its culture of transparency, alignment and accountability.
CODI’s ten majority-owned subsidiaries are engaged in the following lines of business:
The design and marketing of purpose-built technical apparel and gear serving a wide range of global customers (5.11);
The manufacture of quick-turn, small-run and production rigid printed circuit boards (Advanced Circuits);
The design and manufacture of custom packaging, insulation and componentry (Altor Solutions);
The manufacture of engineered magnetic solutions for a wide range of specialty applications and end-markets (Arnold Magnetic Technologies);
The design, engineering and marketing of dial-based fit systems delivering a scientifically proven performance advantage for athletes (BOA Technology);
The design and marketing of wearable baby carriers, strollers and related products (Ergobaby);
The design, manufacture, and marketing of high-end, one-of-a-kind jewelry (Lugano Diamonds);
The design and manufacture of baseball and softball equipment and apparel (Marucci Sports);
The manufacture and marketing of portable food warming systems used in the foodservice industry, creative indoor and outdoor lighting, and home fragrance solutions for the consumer markets (Sterno); and
The design, manufacture and marketing of airguns, archery products, optics and related accessories (Velocity Outdoor).
Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements with regard to the expectations related to the future performance of Marucci, Lizard Skins and CODI. Words such as "believes," "expects," “will,” “anticipates,” “intends,” “continue,” "projects," “potential,” “assuming,” and "future" or similar expressions, are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions, some of which are not currently known to CODI or Marucci. In addition to factors previously disclosed in CODI’s reports filed with the SEC, the following factors, among others, could cause actual results to differ materially from forward-looking statements: difficulties and delays in integrating Lizard Skins’ business or fully realizing cost savings and other benefits; business disruption following the closing of the transaction; changes in the economy, financial markets and political environment; risks associated with possible disruption in CODI’s or Marucci’s operations or the economy generally due to terrorism, natural disasters, social, civil and political unrest or the COVID-19 pandemic; future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); general considerations associated with the COVID-19 pandemic and its impact on the markets in which we operate; and other considerations that may be disclosed from time to time in CODI’s publicly disseminated documents and filings. Further information regarding CODI and Marucci and factors which could affect the forward-looking statements contained herein can be found in CODI’s annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. Forward-looking statements speak only as of the date they are made. Except as required by law, neither CODI nor Marucci undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.