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Halo Branded Solutions Sold To Investment Firm
Breaking News Alert 
May 2, 2012

As first reported in a Breaking News Alert, Compass Diversified Holdings has sold Counselor Top 40 distributor Halo Branded Solutions (asi/356000) to Candlelight Investment Holdings for a total enterprise value of $76.5 million. Candlelight is a single-purpose investment vehicle formed as a partnership between PSP Capital Partners LLC, a Chicago-based private investment firm, and Halo management. "We are very excited about our new partnership with PSP," Marc Simon, Halo's CEO, told Counselor in an exclusive interview. "The advantage now is that this investor has a longer time horizon, and they're very willing to invest in improvements even if there isn't an immediate payoff."

Simon said there will be no management changes as a result of this deal, as senior management at Halo is investing in the company along with PSP.

For Compass (NASDAQ: CODI), which purchased Halo in 2007 for $62.5 million, the deal represent an opportunity to improve its own financial positioning. "The divestiture of Halo allows us to increase our liquidity and supports our efforts to maximize value for our owners," said Alan Offenberg, Compass CEO, in a statement. "We enjoyed working with Halo over the past five years and wish the company continued success."

In its search for a new owner, Simon said Halo first began interviewing investment firms last June. It signed a letter of intent with PSP in January and finalized the deal between PSP and Compass earlier this week. Troy Noard, PSP managing director, said his company is looking forward to its new relationship. "We are delighted to partner with Marc and his management team to continue to build Halo," Noard said. "We are impressed with Halo's leadership position in an industry that is positioned for strong growth. We are eager to invest in and build upon Halo's success."

Halo Branded Solutions reported 2011 North American ad specialty sales of $170.9 million, an increase of 7% over 2010.

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