Compass Diversified sells Sterno Foodservice assets for $292.5M

Compass Diversified (NYSE:CODI), an owner of middle-market businesses, announced the successful completion of the sale of Sterno’s foodservice operations to Archer Foodservice Partners.

The deal, which became effective on May 1, 2026, was executed at an enterprise value of $292.5 million.

Following customary working capital adjustments and allocations to non-controlling interest holders, Compass Diversified received approximately $280 million in cash proceeds at the closing of the transaction.

The move marks a strategic exit from a long-held asset in the portable warming and creative lighting space as the firm reshapes its portfolio toward high-growth consumer and industrial brands.

The primary objective for the transaction proceeds is the immediate fortification of the company's balance sheet.

CODI management has designated the net proceeds for the repayment of outstanding senior secured debt.