Compass Diversified Holdings has reached an agreement to sell its Sterno food service unit for $292.5 million. The transaction, announced on Tuesday, is set to strengthen Compass’s financial position and allow for reinvestment in its core businesses.

“This sale reflects our commitment to optimizing our portfolio and enhancing shareholder value,” said Compass CEO. The deal is expected to close in the fourth quarter of 2023, subject to customary closing conditions and regulatory approvals.

Sterno is a leading provider of portable food warming products and catering supplies, serving various sectors including restaurants and event planning. The company has seen steady growth, driven by increased demand for outdoor and on-the-go dining solutions.

Compass Diversified previously acquired Sterno in 2017, recognizing the brand’s potential in the food service market. The current sale is part of Compass’s strategy to streamline operations and focus on its most profitable segments.

The proceeds from the sale will be used to reduce debt and explore further investment opportunities. This move comes as part of a broader trend among corporations seeking to optimize their asset portfolios in an evolving market landscape.

Source: news source