Highlander Partners Acquires Juvenile Products Leader Ergobaby

Highlander Partners, a Dallas-based private investment firm, has announced the acquisition of The Ergo Baby Carrier, Inc., (Ergobaby) from Compass Diversified (NYSE: CODI). Ergobaby, founded in 2003 and headquartered in Los Angeles, California, is the global market leader in premium baby carriers. The acquisition aligns with Highlander's focus on investing in category-leading branded consumer product companies and implementing a "buy and build" approach.

Ergobaby's comprehensive product line includes ergonomically designed baby carriers, wraps, strollers, bouncers, highchairs, maternity and post-partum support bands and apparel, and feeding, sleep, and nursing accessories. The company's diverse brand portfolio consists of three distinct market leaders: Ergobaby, Tula, and Belly Bandit. Ergobaby's global workforce of 170 employees reaches customers across more than 1,800 retail doors and maintains distribution in over 75 countries.

Jeff L. Hull, President and CEO of Highlander Partners, commented on the acquisition, "This acquisition further emphasizes Highlander's focus on investing in category-leading branded consumer product companies. As the #1 baby carrier brand globally, Ergobaby has tremendous growth opportunities driven by product innovation, market expansion, and increased consumer awareness. In addition, we have a strong track record of implementing a 'buy and build' approach with our investments and see significant M&A opportunities that would complement Ergobaby's parenting solutions portfolio and business strategy to better serve its customers in the broader juvenile products market."

Jason Frame, CEO of Ergobaby, added, "We are excited about the new partnership with Highlander and will benefit from their expertise within branded consumer products. The management team is energized, and our pipeline is full of new opportunities. Our brands enjoy exceptional consumer awareness, and we are well positioned to continue our historical success in the foreseeable future."

The acquisition of Ergobaby from Compass Diversified represents a strategic move in the juvenile products market. Ergobaby's position as the global market leader in premium baby carriers, with distribution across 1,800+ retail locations in 75+ countries, makes it an attractive acquisition target. The transaction aligns with current market trends showing increased consolidation in the juvenile products sector.



Highlander Partners' "buy and build" strategy suggests potential future bolt-on acquisitions that could complement Ergobaby's parenting solutions portfolio and business strategy. The company's diverse brand portfolio (Ergobaby, Tula, and Belly Bandit) provides multiple growth vectors and cross-selling opportunities. Highlander can leverage this diversity to expand Ergobaby's market presence through strategic acquisitions that complement its existing brands. For instance, Highlander could acquire companies that specialize in complementary products, such as infant clothing or accessories, to further enhance Ergobaby's offerings and attract a broader range of customers. Additionally, Highlander could explore geographic expansion by acquiring companies in new markets, allowing Ergobaby to grow its customer base and increase its global footprint.



In conclusion, Highlander Partners' acquisition of Ergobaby positions the company well for continued growth and success in the juvenile products market. With its strong brand portfolio, global distribution network, and Highlander's expertise in branded consumer products, Ergobaby is well-equipped to capitalize on growth opportunities and maintain its market leadership position.