Compass Diversified Holdings recently announced the signing of an agreement to purchase Liberty Safe and Security Products, Inc. from Catterton Partners, a consumer focused private equity company.

Compass Diversified Holdings paid $70 million for a 96% stake in Liberty Safe and Security Products, Inc. Compass Diversified Holdings funded the purchase with its revolving credit facility.

“We expect the acquisition of Liberty to immediately provide our owners with ten to fifteen cents per share of cash flow accretion on a full year basis. Furthermore, we are optimistic that in the current environment, we will have additional opportunities to acquire businesses attractively on behalf of our shareholders,” said Joe Massoud, the CEO of Compass Diversified Holdings.

Liberty Safe and Security Products, Inc. is a manufacturer of home safes for gun storage and other uses. The company reported $73.8 million in revenues in 2009, and is headquartered in Utah. Their products are sold in major retailers under the Liberty Brand, and sold under private label offerings including Remington, John Deere and Cabela’s.

Compass Diversified Holdings owns six other businesses – American Furniture Manufacturing, Anodyne Medical Device, Advanced Circuits, Fox Racing Shox, Halo Lee Wayne and Staffmark.

Let us hear your thoughts below: