ADW Capital urges Compass Diversified to begin strategic review

ADW Capital Management, LLC, which holds approximately 19.3% of the common stock of Compass Diversified Holdings (NYSE: CODI) through shares and stock options, sent an open letter to the company's board of directors calling for an immediate strategic review process and what it described as an orderly liquidation of the company.

In the letter, ADW Capital said it believes a strategic process is necessary to prevent further value destruction. The firm's analysis claims that internalizing the external manager could create between $50 and $60 of value per share.

ADW Capital also said its findings indicate that certain board members lack true independence and that conflicts of interest are present among board members.

The Miami Beach-based investment firm urged the board to engage with ADW Capital or face a proxy contest.

ADW Capital Management was founded by Adam Wyden in 2010 and operates as the investment advisor for a concentrated, long-biased investment partnership. The information above is based on a press release issued by ADW Capital Management.

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