Welcome to our dedicated page for Compass Diversified news (Ticker: CODI), a resource for investors and traders seeking the latest updates and insights on Compass Diversified stock.
Compass Diversified owns and manages a portfolio of middle-market businesses organized for reporting around branded consumer and industrial operations. Company news commonly covers consolidated operating results, subsidiary-level performance, portfolio acquisitions and divestitures, debt reduction, and cash distributions on its Series A, Series B, and Series C preferred shares.
Recurring updates also include developments at operating subsidiaries, such as commercial agreements involving Arnold Magnetic Technologies, and governance changes at the board level. CODI’s disclosures frame each subsidiary as an operating segment, with portfolio activity tied to its broader model of owning and managing branded consumer and industrial businesses.
Compass Diversified Holdings (NYSE: CODI) has announced a significant amendment to its Management Services Agreement with Compass Group Management , effective January 1, 2025. The new structure introduces a tiered base management fee system and an incentive management fee.
The base management fee will be:
- 2.0% for adjusted net assets up to $3.5 billion
- Initial threshold fee plus 1.25% for assets between $3.5-10 billion
- 1.5% for assets of $10 billion or more
An additional incentive fee of 0.25% applies on assets exceeding $3.5 billion (up to $10 billion), contingent on achieving a three-year annualized internal rate of return above 12% and requires Compensation Committee approval. The amendment also eliminates integration services fees and excludes excess cash from adjusted net assets calculations.
Compass Diversified Holdings (NYSE: CODI) has announced a significant amendment to its Credit Agreement with Bank of America on January 9, 2025. The amendment includes two key components: an immediate $200 million Incremental Term Loan and $100 million in Delayed Draw Term Loan Commitments available until July 9, 2025.
The funds will support new acquisitions, working capital, capital expenditures, and general corporate purposes. The Incremental Term Loan requires quarterly repayments ranging from $3.75 million to $11.25 million starting March 31, 2025, with final payment due July 12, 2027. The Delayed Draw Term Loan allows for up to two draws and can be reduced or terminated with five days' notice.
Compass Diversified Holdings (NYSE: CODI) announced changes to its Board of Directors. Director Gordon M. Burns will not seek re-election at the 2025 annual shareholders meeting and stepped down as Chair of the Nominating & Corporate Governance Committee on January 3, 2025. Burns, who joined the Board in 2008, will remain on the Board and as a member of both the Nominating and Compensation Committees until the 2025 meeting.
Nancy B. Mahon, who has served as a director since May 2023, has been appointed as the new Chair of the Nominating Committee. Mahon currently serves as Chief Sustainability Officer at The Estée Lauder Companies and holds a juris doctor degree from NYU School of Law.
Compass Diversified (NYSE: CODI) announced its Board of Directors has declared quarterly cash distributions for the fourth quarter of 2024. A distribution of $0.25 per share will be paid on January 23, 2025, to holders of Common Shares as of January 16, 2025. Additionally, distributions for the Series A, B, and C Preferred Shares have been declared. Series A Preferred Shares will receive $0.453125 per share, Series B Preferred Shares will receive $0.4921875 per share, and Series C Preferred Shares will also receive $0.4921875 per share. These distributions will be paid on January 30, 2025, to holders of record as of January 15, 2025.
The distributions should generally be considered qualified dividends for U.S. federal income tax purposes, provided the requisite holding period is met. However, CODI does not expect all distributions paid in 2024 to be qualified dividends due to expected earnings and profits being below cash distributions. Any excess will be treated as a non-taxable return of capital or capital gain. Final tax statuses for 2024 and 2025 distributions will be reported in early 2025 and 2026, respectively.
Highlander Partners has announced the acquisition of Ergobaby from Compass Diversified (NYSE: CODI). Founded in 2003 and based in Los Angeles, Ergobaby is the global market leader in premium baby carriers, operating through a workforce of 170 employees across more than 1,800 retail locations in over 75 countries.
The company manages three main brands: Ergobaby (flagship premium baby carriers), Tula (functional carriers with expressive prints), and Belly Bandit (maternity and postpartum solutions). Their product line includes carriers, wraps, strollers, bouncers, highchairs, and various maternity accessories.
Highlander Partners plans to pursue growth through product innovation, market expansion, and implementing a "buy and build" strategy with potential M&A opportunities in the juvenile products market.
Compass Diversified (NYSE: CODI) has announced the sale of its majority-owned subsidiary, Ergobaby, to Highlander Partners, L.P., a Dallas-based private investment firm. The transaction was simultaneously agreed upon and completed. Proceeds from the sale will be allocated towards debt reduction and general corporate purposes.
Ergobaby, known for its premium juvenile products, will transition to new ownership under Highlander. CODI's CEO Elias Sabo expressed pride in Ergobaby's position as a global leader and indicated plans to continue acquiring and managing innovative brands to drive long-term shareholder value.
Compass Diversified (NYSE: CODI) has announced its upcoming investor day scheduled for January 16, 2025, at Convene's One Liberty Plaza in New York City. The event will run from 9:30 AM to 1:30 PM ET and will feature multiple segments including:
• A presentation and Q&A session with CODI's executive management team
• A panel discussion moderated by CEO Elias Sabo featuring CEOs from 5.11 Tactical, PrimaLoft, and Altor Solutions
• A self-guided interactive tour showcasing CODI's 10 businesses
• Continental breakfast and lunch
Interested parties can attend either in-person by RSVPing to CODI@gateway-grp.com or virtually through a webcast link. Virtual attendees are advised to allow extra time for necessary software downloads.
Compass Diversified (NYSE: CODI) reported strong Q3 2024 financial results with net sales up 11.8% to $582.6 million. The company saw double-digit sales growth driven by Branded Consumer businesses, while Industrial businesses showed low single-digit growth. Key highlights include:
- Income from continuing operations of $31.5 million vs previous loss of $14.0 million
- Adjusted EBITDA up 28% to $114.0 million
- Adjusted Earnings increased 65% to $48.7 million
- Announced $100 million share repurchase program
- Raised 2024 outlook with expected consolidated pro-forma subsidiary Adjusted EBITDA between $510-525 million
Compass Diversified (NYSE: CODI), an owner of leading middle market businesses, has announced its plans to release financial results for the third quarter ended September 30, 2024. The results will be released on Wednesday, October 30, 2024, after the close of market trading.
CODI has scheduled a conference call to discuss the results on the same day at 5:00 p.m. ET. The call will feature the company's Chief Executive Officer, Elias Sabo, Chief Financial Officer, Stephen Keller, and Chief Operating Officer of Compass Group Management, Pat Maciariello.
A live webcast of the call will be available on the Investor Relations section of CODI's website. Participants can access the call by phone through a registration link provided. To avoid delays, participants are encouraged to dial in 15 minutes before the scheduled start time. A replay of the webcast will be available for a time on the company's website.
Compass Diversified (NYSE: CODI) has announced a $100 million share repurchase program authorized by its Board of Directors. The program allows CODI to repurchase its issued and outstanding common shares through December 31, 2024, with the possibility of extension. The repurchases can be executed through various methods, including open market transactions, investment banking institutions, privately-negotiated transactions, or direct purchases.
CEO Elias Sabo stated that this program reflects the company's confidence in its long-term strategy and growth prospects. The timing and amount of repurchases will be subject to CODI's discretion, considering market conditions, legal requirements, and other corporate factors.