Archer to Buy Sterno Food Service for $292.5M

Compass Diversified has signed a definitive agreement to sell the food service business of its majority-owned subsidiary SternoCandleLamp Holdings (Sterno) to Archer Foodservice Partners. The deal values the food service business at an enterprise value of $292.5 million, subject to customary working capital and other adjustments.

In 2025, the business to be sold generated subsidiary adjusted EBITDA of approximately $30.3 million, including certain shared overhead expenses that will remain after the transaction. Compass Diversified plans to use net proceeds to repay outstanding debt, targeting a senior secured net leverage ratio below 1.0x and avoiding excess-leverage fees beyond June 30, 2026. Compass will retain Sterno’s home fragrance business under the Rimports name.

The transaction is expected to close subject to customary conditions.