Compass Diversified shares jump 13.02% intraday as it agrees to sell Sterno food service unit to Archer Foodservice Partners for $292.5 million.

Compass Diversified surged 13.02% intraday, as the company announced a definitive agreement to sell its Sterno foodservice business to Archer Foodservice Partners for an enterprise value of $292.5 million. The transaction is expected to significantly reduce the company’s leverage, with proceeds used to repay senior secured debt, bringing the net leverage ratio below 1.0x and avoiding excess leverage fees beyond June 30, 2026.