Compass Sells Staffmark Holdings

October 19, 2011 – Compass Diversified Holdings, an owner of middle market businesses, has entered into a definitive agreement to sell its majority owned subsidiary, Staffmark Holdings, Inc., to a subsidiary of Japan-based Recruit Co., Ltd., for a total enterprise value of $295 million. The proceeds will be used to repay substantially all of the outstanding debt under the company's revolving credit facility. “While it was a difficult decision to end our long-standing relationship with Staffmark, one of our initial subsidiaries at the time of our IPO in May of 2006, we enjoyed and appreciate the opportunity to have worked with its outstanding management team for all these years,” said Alan Offenberg, CEO of Compass Diversified Holdings. “Together, we weathered and thrived through the recent economic turmoil, building Staffmark into one of the premier staffing companies in the U.S., while growing the company's cash flow significantly during our period of ownership. We wish both Staffmark and Recruit continued success in the future.”