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Compass Diversified Holdings ( (CODI) ) has provided an announcement.
On March 28, 2026, Compass Diversified entered into a definitive agreement to sell the food service business of its majority-owned subsidiary SternoCandleLamp Holdings for an enterprise value of $292.5 million to Archer Foodservice Partners, a Wynnchurch Capital portfolio company. The deal, announced on March 30, 2026 and expected to close in May 2026 subject to customary regulatory and shareholder approvals, will see Sterno’s home fragrance operations carved out into Rimports, which CODI will retain as a majority-owned subsidiary.
CODI, which owns about 92% of Sterno, plans to use the net proceeds to repay outstanding debt under its senior credit facility, targeting a senior secured net leverage ratio below 1.0x and avoiding excess leverage fees after June 30, 2026. The transaction underscores CODI’s strategy of active portfolio management and balance sheet deleveraging, while positioning Rimports as a standalone home fragrance platform and transferring Sterno’s food service franchise, which generated about $30.3 million in adjusted EBITDA in 2025, into a larger foodservice consumables group under Archer.
The most recent analyst rating on (CODI) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Compass Diversified Holdings stock, see the CODI Stock Forecast page.
Spark’s Take on CODI Stock
According to Spark, TipRanks’ AI Analyst, CODI is a Neutral.
The score is held down primarily by weak recent financial performance (losses, negative cash flow, and high leverage). Support comes from improving technical momentum and constructive 2026 guidance/deleveraging targets, while valuation is mixed given the very high yield but loss-making P/E.
To see Spark’s full report on CODI stock, click here.
More about Compass Diversified Holdings
Compass Diversified (CODI) is a publicly traded owner of controlling stakes in middle‑market businesses, using a permanent capital structure to provide both debt and equity to its subsidiaries. The company focuses on long-term cash flow generation and value creation, recycling subsidiary cash flows into new investments while maintaining a diversified portfolio across consumer and industrial sectors.
Average Trading Volume: 1,332,224
Technical Sentiment Signal: Sell
Current Market Cap: $502.6M
See more insights into CODI stock on TipRanks’ Stock Analysis page.