Update on the acquisition of Primaloft in 2022


One of the world’s largest sports companies, dedicated to the manufacture of synthetic material for outdoor sportswear, has just changed ownership. Primaloft has been bought by Compass Diversified, a Connecticut-based investment firm that paid $530 million for the company.

Although many may be shocked by the fact that a company as financially profitable and with such a prosperous future ahead of it as Primaloft has decided to sell its capital to another major company, there are a number of reasons why they have decided to do so and we are going to tell you about them.

If all you know about Primaloft is its ongoing collaboration with sportswear brands, stay tuned because you’re probably going to be interested not only in all the companies it works with, but why so many are interested in the Primaloft way of working. Let’s get to it!

Primaloft features: partnerships and best strengths

During the last few days there has been constant communication to the press from the directors of both Compass Diversified and Primaloft. Logically, they have been asked about this operation, which has been the most important for both companies so far in 2022, and the words on both sides have been extremely positive.

This is especially true for Compass Diversified, which has not hesitated to talk about the best features of Primaloft. And the fact is that this company, which has been working since 1983, that is, 39 years ago, has managed to establish itself as the best partner of other major companies such as North Face, Herry Hansen, Columbia, Marmot, Canada Goose or Patagonia, among others. This is because what they manufacture is a synthetic insulation membrane that helps other products to protect from the cold, rain and wind.

If you have ever owned NorthFace coats or Patagonia tents, you will know that they are well known for the quality of their materials, which protect all people who practice outdoor sports such as hiking, mountaineering or, in general, any outdoor activity. This is not only for other attributes of these brands, but for that synthetic membrane that helps so much to protect. And this membrane is Primaloft’s idea and contribution to all other brands in the market, and the main reason why Compass Diversified is so interested in acquiring it.

And that’s all? Well, no! There are also economic reasons behind this interest in acquiring Primaloft. Since its foundation, Primaloft’s economic growth has always been positive and exponential. The fact that they have significant intellectual property, and not so much competition in the market, makes them simply a profitable business, and any company like Compass Outdoor, which is dedicated to acquiring innovative companies, is interested in them.

Are there other reasons for the acquisition of Primaloft?

There are other virtues of Primaloft for the immediate and more distant future, which is of great interest to other large companies or projects such as Compass Diversified. And the most important is the brand’s environmental focus.

A few decades ago, unfortunately, the sustainability plans of the world’s brands and companies did not have the relevance they have today. Thanks to greater awareness, and also to the restrictions and rules that are being put in place by the world’s economic organizations to take care of our planet, today the fact that a company has a good ecological track record is a plus in the interest towards it.

Primaloft, according to its own reports, has diverted some 614 million plastic bottles from landfills since 2015. In other words, it has reused an enormous amount of the plastic waste that is normally generated by many other companies.

But there are other interesting facts as well: Primaloft has pioneered biodegradable and carbon-negative fiber polymers and has reduced emissions by up to 70 percent for its patented line of insulation made with PURE manufacturing technology. These are data that come from the company itself, precisely because of some of the advantages for any other large company acquiring the project.

In addition, Compass Diversified is also known for its concern and line of progress always related to sustainability. Therefore, the way in which Primaloft has expanded its business is consistent with its philosophy of only acquiring companies that are ethical and responsible. This, without renouncing to their good economic and investment results.

Will the acquisition of Primaloft by Compass Diversified mean any significant change for customers?

If you are a regular customer of brands that collaborate with Primaloft to use its famous synthetic material, you may be concerned about whether the fact that it has a new owner will mean any significant change in the way the brand works.

But this is not the case, and we are going to tell you why. Until now Primaloft also had a partnership with another large company called Victor Capital Partners. That is to say, far from the knowledge of the brand's customers, there was another economic partner behind it that also did not mean any change in the way Primaloft worked for years.

Now, with the purchase by Compass Diversified, things will remain exactly the same as they were. Its sustainability line will remain the same, precisely because of Compass Diversified's interest in it, and the companies that Primaloft will continue to work with will also be the same.

It is possible, however, that due to this new acquisition, the international market will expand a little more. And thus, the list of Primaloft partners acquiring its synthetic membrane will grow.

In any case, the executive team that until now made the most important decisions at Primaloft will not change. The news about the acquisition of Primaloft was in the air since last May, and this was one of the points that aroused most curiosity. But Compass Diversified is satisfied with the way Primaloft works, and therefore will not change the management team behind it at all. They will simply provide financial capital that will do nothing more than enhance Primaloft's growth over the next few years.

Thanks so much for reading, see you in the next post!

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