Based in Pukalani, Hawaii (Maui) and founded in 2003, ERGObaby is a premier designer, marketer and distributor of baby wearing products and accessories. ERGObaby's reputation for product innovation, reliability and safety has led to numerous awards and accolades from consumer surveys and publications, including Parenting Magazine, Pregnancy Magazine and Wired Magazine. ERGObaby offers a broad range of wearable baby carriers and related products that are sold through more than 700 retailers and web shops in the United States and internationally in approximately 20 countries.

The total enterprise value in the transaction was $91 million and represents approximately seven times ERGObaby's expected 2010 EBITDA. Acquisition related costs were approximately $1.9 million. In addition, an Internal Revenue Code Section 338 (h) (10) election will be made with respect to the transaction, which will allow the company to amortize a substantial portion of the purchase price for tax purposes.

CODI funded the acquisition through drawings on its revolving credit facility. CODI's initial equity ownership in ERGObaby as a result of the transaction is approximately 84% on a primary basis. ERGObaby's former owner and certain other investors invested alongside CODI and own the remaining 16%. For the year ended December 31, 2009, ERGObaby reported revenue of $22.8 million.

Commenting on the acquisition, Joe Massoud, CEO of CODI, said, "We are pleased to once again take advantage of our financial strength to expand our family of niche leading businesses. ERGObaby is an exciting company for us to acquire due to its attractive industry positioning, passionate and loyal customer base, stability of core product demand and potential for growth through channel and geographic expansion, as well as product extension. ERGObaby's strong brand recognition with its target customers in the U.S. and abroad reflects its history of design innovation and superior quality.