Compass Diversified Holdings (NYSE: CODI) has agreed to buy Foam Fabricators Inc. for about $248 million.

Scottsdale, Arizona-based Foam Fabricators, founded in 1957, manufactures protective foam products for the electronics, pharmaceuticals, automotive and building products sectors out of 13 North American production facilities. The target generated about $30 million in Ebitda on on $126 million in revenue for the trailing 12 months ended Nov. 30, 2017. Wells Fargo Securities (NYSE: WFC) is advising Foam Fabricators.

“We are pleased to start the year with an attractive platform acquisition, growing our family of niche leading businesses to ten,” says Compass Diverified CEO Alan Offenberg.

Compass Diversified, located in Westport, Connecticut, is a holding company and operator of middle market businesses. The firm invests up to $500 million in targets that have at least $10 million in Ebitda. Some of Compass Diversified’s investments include: apparel company 5.11; environment services provider Clean Earth; food products producer Manitoba Harvest; and baby products maker Ergobaby.

Middle-market foam producers are proving to be attractive targetsArsenal-backed Acella is purchasing assets from Covestro; Industrial Opportunity Partners made an in invest in Creative Foam; FFL Partners backed-Icynene is buying Lapolla Industries and in 2016, Audax porfolio comppany Innovative Chemical Products acquired Fomo Products.