WESTPORT, Conn., June 25 /PRNewswire-FirstCall/ -- Compass Diversified Holdings (Nasdaq GS: CODI), a leading acquirer and manager of middle market businesses, announced today that its wholly owned subsidiary, Compass Group Diversified Holdings LLC (the 'Company') simultaneously entered into a definitive agreement to sell and consummated the sale of its majority owned subsidiary, Aeroglide Holdings, Inc. ('Aeroglide'), to Buhler Holding AG ('Buhler') for a total enterprise value of $95 million.

The Company will receive approximately $85.6 million of total proceeds from the sale, after payment to minority shareholders and payment of all transaction expenses, with respect to its debt and equity interests in Aeroglide. Aeroglide was acquired by the Company on February 28, 2007 for a total enterprise value of approximately $60 million. The Company anticipates recording a gain on the sale of Aeroglide of between $32 million to $34 million in the fiscal quarter ended June 30, 2008.

Commenting on the transaction, I. Joseph Massoud, chief executive officer of the Company, said, 'The sale of Aeroglide represents an opportunistic transaction for CODI and its shareholders based on the strong growth in cash flow generated by the business in less than two years of our ownership. The sale price of approximately 8.1x trailing twelve month EBITDA represents a significant increase over the multiple paid by us. As with all of our subsidiaries, we both served as lenders to Aeroglide, as well as majority equity holders. Our initial February 2007 investment, completed nine months after CODI's initial public offering, was comprised of approximately $39 million in debt financing and $18.9 million in equity for our majority ownership stake. The outstanding debt balance of approximately $31.4 million was assigned to and purchased by Buhler at par, and the value of our equity ownership in CODI at the sale of this transaction was approximately $54.2 million. We are excited to have achieved this substantial gain on our ownership of this business for our shareholders. We appreciate the opportunity to have worked with Aeroglide, and wish the Aeroglide management team continued success in the future.'

Mr. Massoud continued, 'As a global leader in process engineering for producing food and engineering materials, Buhler is well positioned to serve customers of Aeroglide with new integrated solutions. The combined worldwide capabilities of the two firms now offer the greatest variety of options to meet a customer's processing requirements.'

Mr. Massoud concluded, 'Combined with the previously announced upcoming sale of Silvue Technologies Group, this transaction represents the second divestiture by CODI in 2008.