Compass Diversified Holdings (CODI), which bought Camelbak Products last August, has sold its majority stake in Halo Holding Corporation, a leading supplier of promotional products that it acquired five years ago, for a total enterprise value of $76.5 million.

Because of the debt related to Halo, the transaction will not result in a significant gain or loss for CODI, but it will increase its liquidity to sustain the growth of its other subsidiaries and to take advantage of new acquisition opportunities.

CODI will continue to own shares in nine other companies. Besides Camelbak, it controls Fox, a major supplier of premium suspensions for mountain bikes and other off-road vehicles; Ergobaby, a supplier of wearable baby strollers; and Liberty Safe, which produces home and gun safes.

These three companies represented 46 percent of CODI's sales of $232.4 million in the first quarter of this year and more than 100 percent of its operating profit of $11.6 million. Both figures improved considerably compared with one year ago. CODI was thus able to improve its quarterly net loss to $0.8 million from $7.0 million a year ago.

Camelbak reached an operating profit of $7.1 million in the quarter, up from only $0.2 million on 23.2 percent higher sales of $40.2 million. Hydration systems and bottles grew by $7.1 million and $2.3 million, respectively, representing 84 percent of its sales during the quarter. A decline in the proportion of military sales and low-margin gloves in the product mix led Camelbak to improve its gross margin by 2.5 percentage points to 45.2 percent.