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ADW Capital Management Sends Letter to Compass Diversified’s Board Calling for an Immediate Strategic Review Process and Orderly Liquidation of the Company
Strongly Believes that Structural Discount to Net Asset Value Due to Underperformance and Misalignment of External Manager and Common Shareholders Cannot be Repaired ADW Capital Analysis Supports Potential Valuation of $26.00 Per Share Via Liquidation MIAMI BEACH, Fla., Feb. 24, 2026 (GLOBE NEWSWIRE) -- ADW Capital Management, LLC, which beneficially owns approximately 7.65% of the shares outstanding of Compass Diversified (NYSE: CODI) (the “Company”) through ownership of shares and stock option
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[{"type":"text","content":"Strongly Believes that Structural Discount to Net Asset Value Due to Underperformance and Misalignment of External Manager and Common Shareholders Cannot be Repaired","length":165,"tagName":"p"},{"type":"text","content":"ADW Capital Analysis Supports Potential Valuation of $26.00 Per Share Via Liquidation","length":85,"tagName":"p"},{"type":"text","content":"MIAMI BEACH, Fla., Feb. 24, 2026 (GLOBE NEWSWIRE) -- ADW Capital Management, LLC, which beneficially owns approximately 7.65% of the shares outstanding of Compass Diversified (NYSE: CODI) (the “Company”) through ownership of shares and stock options, today issued an open letter to the Company’s board of directors calling for the Company to immediately commence a strategic review process and orderly liquidation of the Company to preserve value for shareholders.","length":464,"tagName":"p"},{"type":"text","content":"A full copy of the letter is below:","length":35,"tagName":"p"},{"type":"text","content":"February 24, 2026","length":17,"tagName":"p"},{"type":"text","content":"Board of DirectorsCompass Diversified Holdings301 Riverside AvenueSecond FloorWestport, CT 06880","length":100,"tagName":"p"},{"type":"text","content":"Dear Members of the Board:","length":26,"tagName":"p"},{"type":"text","content":"ADW Capital Partners, L.P. (“ADW” or the “Fund”) is a substantial shareholder of Compass Diversified (NYSE:CODI) (“CODI” or the “Company”) beneficially owning approximately 7.65% of the shares outstanding through ownership of shares and stock options. After a comprehensive review of the Company’s financial /share price performance, governance structure, capital allocation record, heavily discounted valuation, and onerous management services agreement, we have reached a definitive and damning conclusion: We believe the structural misalignment embedded in the Company’s management services agreement with its external manager cannot be credibly repaired / rectified and the most recent failure to prevent fraudulent activity at its Lugano subsidiary only further highlights this. The external manager has limited ownership and downside in the Company and has benefited from ~20 years raising equity/debt/preferred at a discount to NAV all at the expense of common equity. Accordingly, the only responsible action available to the Board is to immediately commence a formal strategic review p...
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