A $200 million acquisition of Baton Rouge-based Marucci Sports has been completed by Compass Diversified Holdings.
The Connecticut-based publicly traded investment company's operations are similar to private equity companies that buy businesses for their portfolio.
Only 95% of Marucci Sports' equity was sold; the remainder is carved out for existing shareholders and includes management of the company. About $11 million of the deal stemmed from minority shareholders.
Marucci has grown to about $15 million in annual adjusted earnings in 2019, before interest, taxes, depreciation and amortization — a common business metric. Marucci’s product lineup has grown to include wood and metal bats, sports apparel and accessories, batting and fielding gloves, and bags and protective gear.
Compass sees Marucci as a “premium brand” for its portfolio. Its new owner doesn’t expect to flip Marucci as long as it keeps growing. Compass operates with a private equity philosophy, but has its own independent capital rather than relying on big debts to make acquisitions.
Marucci Sports now can tap revolving credit of $250 million to grow the business, with up to $650 million available.
The company has 230 employees, about 175 of whom work in Baton Rouge.
It has a growing network of clubhouse locations in Baton Rouge, Lafayette, Covington and planned in New Orleans. Its franchises are in Austin, Texas; Orlando, Florida; Ozark, Missouri; and planned in Las Vegas.
