Altor Solutions to Acquire Lifoam from Jadex for $137M

On August 19, 2024, Jadex Inc., a leading company in manufacturing and materials sciences, announced that it has entered into a definitive agreement to sell Lifoam Industries, LLC ("Lifoam") to Altor Solutions ("Altor"), a subsidiary of Compass Diversified (NYSE: CODI). The sale, valued at $137 million in cash, is set to significantly impact both companies' strategic directions. The net proceeds from this transaction, after taxes, are planned to be utilized for reducing existing debt and investing in the remaining operations of Jadex.

Lifoam, renowned for its expertise in temperature-controlled packaging, provides a range of solutions including thermal shippers and refrigerant gel packs. These products cater to various sectors such as healthcare, commercial enterprises, and retail. Recently, Lifoam has seen substantial growth, especially in the cold chain shipping market, which is crucial for healthcare and food industries. The company's expansion and success can be attributed to its commitment to innovation and its focus on developing environmentally-friendly products. A prime example of this innovation is Lifoam’s Bioffex® technology, which utilizes polylactic acid (PLA)-based bead foam. This technology is notable for its ability to be commercially composted within four weeks, reflecting Lifoam’s dedication to sustainability.

Mario D'Ovidio, CEO of Jadex, expressed his pride in the role the company has played in Lifoam's development. "We are proud to have supported Lifoam's growth, watching it broaden its customer base and introduce innovative, eco-friendly products while part of Jadex. We are confident that Lifoam will continue to thrive under Altor, which focuses on protective and cold chain packaging solutions."

The transaction marks a significant milestone for both companies. For Jadex, it represents a strategic move to streamline its focus and allocate resources more effectively. The proceeds from the sale will enable Jadex to address its debt and invest in its core business areas, positioning it for future growth and development. For Altor, acquiring Lifoam enhances its portfolio in the protective and cold chain packaging sector, aligning with its strategic objectives and expanding its capabilities in this important market.

Overall, this sale underscores the dynamic nature of the industry and the ongoing evolution of market players as they adapt to changing demands and opportunities. The agreement highlights the strategic realignment of resources and focuses on leveraging innovation and sustainability to meet the needs of a diverse customer base.

Jadex is a U.S.-based manufacturer and materials sciences company that leverages innovation and technology to create sustainable products for medical, industrial, and consumer markets. Its diverse product lineup includes custom-designed plastic components, plastic and bio-based cutlery, engineered nylon resins and monofilaments, zinc products, and temperature-controlled solutions. Jadex operates 18 manufacturing facilities across the continental U.S., the U.K., and Puerto Rico, employing approximately 1,800 people.