Compass Diversified Announces $50 Million Share Repurchase Program

Rhea-AI Summary

Compass Diversified Holdings (NYSE: CODI) has authorized a share repurchase program allowing for the buyback of up to $50 million of its common shares. This initiative reflects the company's strong financial performance and operational results, with CEO Elias Sabo emphasizing confidence in CODI's future. The repurchases may occur through various means until December 31, 2023, considering market conditions and regulatory compliance. CODI's strategy involves maintaining controlling interests in middle-market businesses, enabling long-term cash flow generation and value creation.

Positive

• Authorization of up to $50 million for share repurchase, potentially boosting shareholder value.
• CEO's emphasis on strong operational results indicates healthy business performance.

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• None.

WESTPORT, Conn., Jan. 19, 2023 (GLOBE NEWSWIRE) -- Compass Diversified Holdings (NYSE: CODI) (“CODI” or the “Company”), an owner of leading middle market businesses, today announced that its Board of Directors authorized the repurchase of up to $50 million of CODI’s issued and outstanding common shares.

“CODI continues to produce strong financial and operational results, and the implementation of our first share repurchase program reflects our confidence in the future of the Company,” said Elias Sabo, CEO of Compass Diversified. “CODI’s long-term ownership of leading middle market businesses using our permanent capital base has been a proven driver of shareholder returns, and we believe this new repurchase program is another tool to opportunistically maximize this value.”

Under the authorization, CODI may purchase common shares through December 31, 2023 utilizing one or more open market transactions, transactions structured through investment banking institutions, in privately-negotiated transactions or otherwise, by direct purchases of common shares or a combination of the foregoing in compliance with the applicable rules and regulations of the Securities and Exchange Commission (the “SEC”).

The timing of the purchases and the amount of common shares repurchased is subject to CODI’s discretion and will depend on market and business conditions, applicable legal and credit requirements and other corporate considerations.

About Compass Diversified

Since its founding in 1998, CODI has consistently executed on its strategy of owning and managing a diverse set of highly defensible, middle-market businesses across the niche industrial, branded consumer and healthcare sectors. The Company leverages its permanent capital base, long-term disciplined approach, and actionable expertise to maintain controlling ownership interests in each of its subsidiaries, maximizing its ability to impact long-term cash flow generation and value creation. The Company provides both debt and equity capital for its subsidiaries, contributing to their financial and operating flexibility. CODI utilizes the cash flows generated by its subsidiaries to invest in the long-term growth of the Company and has consistently generated strong returns through its culture of transparency, alignment and accountability. For more information, please visit compassdiversified.com.

Forward Looking Statements

This press release may contain certain forward-looking statements, including statements with regard to the future performance of CODI and its subsidiaries. Words such as "believes," "expects," and "future" or similar expressions, are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements, and some of these factors are enumerated in the risk factor discussion in the Form 10-K filed by CODI with the SEC for the year ended December 31, 2021 and in other filings with the SEC. Except as required by law, CODI undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations

Compass Diversified
irinquiry@compassdiversified.com

Gateway Group
Cody Slach
949.574.3860
CODI@gatewayir.com

Media Relations

The IGB Group
Leon Berman
212.477.8438
lberman@igbir.com

FAQ

What is the purpose of the $50 million share repurchase program by CODI?

The share repurchase program aims to enhance shareholder value by reducing the number of outstanding shares.

When does the share repurchase program for CODI end?

The program is set to run through December 31, 2023.

What are the expected effects of CODI's buyback on its stock price?

The buyback could lead to an increase in stock price due to reduced supply and increased earnings per share.

How will CODI conduct the share repurchases?

CODI may purchase shares through open market transactions, investment banking structures, or privately-negotiated deals.