Compass Diversified shares jump 20.13% intraday as company agrees to sell Sterno food service unit for $292.5 million, significantly reducing leverage.

Compass Diversified surged 20.13% 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 by using net proceeds to repay senior secured debt, bringing the net leverage ratio below 1.0x and avoiding excess leverage fees beyond June 30, 2026.