Compass Diversified Announces New Leader for Healthcare Vertical

Rhea-AI Summary

Kurt Roth has been appointed as Partner and Head of Healthcare at Compass Diversified (NYSE: CODI) as part of the company's expansion into a new healthcare vertical. CEO Elias Sabo emphasized the importance of leadership in launching this segment, identifying healthcare as a high-growth sector with strong barriers to entry. Roth, formerly of Sotera Health Company, brings 25 years of strategic planning and deal-making expertise. CODI aims to leverage healthcare's growth potential to enhance its existing subsidiary capabilities, aligning with its long-term value creation strategy.

Positive

• Appointment of Kurt Roth as Head of Healthcare is aimed at strategic growth in the healthcare sector.
• CODI's focus on healthcare is projected to diversify and stabilize its business portfolio.
• Roth's extensive experience in the healthcare industry enhances CODI's leadership and operational capabilities.

Negative

• None.

Industry Veteran Kurt Roth Named Partner, Head of Healthcare

WESTPORT, Conn., Nov. 03, 2022 (GLOBE NEWSWIRE) -- Compass Diversified (NYSE: CODI) (“CODI” or the “Company”), an owner of leading middle market businesses, today announced the appointment of Kurt Roth as Partner and Head of Healthcare for Compass Group Management LLC. In this role, Roth will work with the organization’s senior investment professionals to launch CODI’s new healthcare vertical.

“Last December, we embarked on a journey to launch our third industry vertical,” said Elias Sabo, CEO of Compass Diversified. “We chose healthcare as we believe it has multiple attractive, high-growth sectors with strong barriers to entry and advantageous demographic trends. Finding the right person to lead this vertical was a key component of our strategy, and we couldn’t be more excited about Kurt joining our organization. We have known Kurt for more than a decade, and he brings extensive domain expertise in healthcare and M&A. We look forward to benefitting from his leadership abilities as we launch this next growth vertical.”

Before joining CODI, Roth spent nearly seven years as Head of Corporate Development and Strategy with Sotera Health Company (Nasdaq: SHC), a leading global provider of mission-critical, end-to-end sterilization solutions, lab testing, and advisory services for the healthcare industry. During his tenure, Sotera consistently grew revenue and expanded profitability while developing a successful track record of identifying, completing, and integrating strategic acquisitions. These acquisitions focused on high-quality businesses that aligned with a mission-driven culture of scientific excellence, customer service, and accountability.

Before Sotera, Roth was a Managing Director in the Investment Banking group at Robert W. Baird & Co. He brings 25 years of deal-making, acquisition integration, and strategic planning expertise to CODI.

“The powerful platform CODI has built and the way in which it truly partners with subsidiary management teams directly aligns with my strategic capabilities and vision, and I am excited about the significant value-creating opportunities ahead,” Roth commented. “I look forward to pairing my background with CODI’s diverse platform and capabilities to expand into the healthcare industry, and I want to thank Elias and the CODI team for this tremendous opportunity.”

In December 2021, CODI identified healthcare as its third industry target in addition to consumer and industrials. The Company believes healthcare has multiple attractive, high-growth segments with strong industry tailwinds, is an acyclical vertical that will bring diversification and stability to the current group of companies, and has strong alignment with CODI’s existing subsidiary priorities.

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.

Investor Relations

Gateway Group
Cody Slach
949.574.3860
CODI@gatewayir.com

Media Relations

The IGB Group
Leon Berman
212.477.8438
lberman@igbir.com

FAQ

Who is Kurt Roth in relation to Compass Diversified (CODI)?

Kurt Roth has been appointed as Partner and Head of Healthcare at Compass Diversified.

Why is Compass Diversified focusing on the healthcare sector?

Compass Diversified sees healthcare as a high-growth sector with strong barriers to entry and advantageous demographic trends.

What previous experience does Kurt Roth bring to CODI?

Kurt Roth has 25 years of experience in strategic planning and deal-making, previously serving as Head of Corporate Development at Sotera Health Company.

What is the significance of launching a healthcare vertical for CODI?

Launching a healthcare vertical is part of CODI's strategy to enhance growth and diversification in its business portfolio.

What are CODI's current industry verticals?

CODI currently focuses on three industry verticals: healthcare, consumer, and industrials.