Compass Diversified Hldgs Stock (NYSE: CODI)

Compass Diversified Hldgs (NYSE:CODI) Stock, Quote.Headers.trade-ideas

Compass Diversified Hldgs

Compass Diversified Holdings is a diversified business conglomerate based in the United States having two groups: branded consumer business and industrial business. Branded consumer businesses are characterized as those businesses that capitalize on a valuable brand name in their respective market sector. It includes 5.11, Ergobaby, Liberty Safe, and Velocity Outdoor. Industrial businesses are characterized as those businesses that focus on manufacturing and selling particular products and industrial services within a specific market sector. The company has operations in the United States, Canada, Europe, Asia Pacific, and other International areas.

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News

Small Cap

Insider Trades

Pre-Market Outlook

Markets

Trading Ideas

CODI

ROST

Although U.S. stocks closed mixed on Wednesday, there were a few notable insider trades.

Over $1M Bet On This Industrial Stock? Check Out These 4 Stocks Insiders Are Buying

NBTB

Although U.S. stocks closed mixed on Friday, there were a few notable insider trades.

$2M Bet On This Industrial Stock? Check Out These 3 Stocks Insiders Are Buying

Earnings

Equities

Guidance

Buybacks

Movers

FOXF

Fox Factory Holding Corp (NASDAQ: FOXF) shares are dipping by 20% today after it reported 

Why Are Automobile Components Maker Fox Factory&#39;s Shares Tumbling Today?

D/B/A Compass Diversified Holdings Shares of Beneficial Interest

Compass Diversified Holdings

Compass Diversified Holdings 7.250% Series A Preferred Shares representing beneficial interest in Compass Diversified Holdings

Compass Diversified Holdings 7.875% Series B Fixed-to-Floating Rate Cumulative Preferred Shares representing beneficial interests in Compass Diversified Holdings

Compass Diversified Holdings 7.875% Series C Cumulative Preferred Shares

Codiak BioSciences Inc Ordinary Shares

Offerings

Compass Diversified May Offer, Sell Common Shares Of Up To $500M From Time To Time

Compass Diversified (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CODI#NYSE">CODI</a>) ("CODI" or the "Company"), an owner of leading middle market businesses, announced today that Stephen Keller has been appointed as the Company's Chief Financial Officer (CFO), effective August 31, 2024. He will be replacing Ryan Faulkingham, who has served as the Company's CFO since July 2013 and is departing the Company effective August 30, 2024. Mr. Faulkingham will continue to serve in an advisory capacity in order to facilitate a seamless transition. &nbsp;
In his new role, Mr. Keller will lead CODI's finance organization, including accounting, planning, treasury, tax, reporting, and investor relations. He brings to CODI over 25 years of executive finance experience across multiple industries, including automotive, healthcare, industrial, specialty materials, retail and apparel branding, and media.
Most recently, Mr. Keller served as Interim Chief Financial Officer and Vice President of Investor Relations at Envista Holdings Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVST#NYSE">NVST</a>), a $2.6 billion company and one of the leading suppliers of dental solutions globally. During his time at Envista, he also served as Vice President Strategy and Business Development, as well as Vice President and General Manager of Nobel Biocare's Prosthetics Business Unit.

Management

NVST

Compass Diversified Tapped Of Envista Holdings As Finance Chief, Taking Over From Ryan Faulkingham, Effective August 31

Altor Solutions ("Altor"), a subsidiary of Compass Diversified (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CODI#NYSE">CODI</a>) and a leading designer and manufacturer of custom protective and cold-chain packaging solutions for the industrial and life sciences markets, today announced it has entered into a definitive agreement to acquire Lifoam Industries, LLC ("Lifoam"), a manufacturer and distributor of temperature-controlled shipping solutions, for an enterprise value of $137 million in cash at closing (excluding working capital and certain other adjustments). &nbsp;
Founded in 1954, Lifoam is a leading manufacturer of temperature-controlled packaging products such as thermal shippers and refrigerant gel packs for the healthcare, commercial and retail industries. Lifoam is a carve-out of the material sciences company Jadex Inc.

Compass Diversified's Altor Solutions Has Entered Into A Definitive Agreement To Acquire Lifoam Industries For An Enterprise Value Of $137M In Cash At Closing

WIIM

Compass Diversified shares are trading lower after the company reported worse-than-expected Q2 revenue results.

Compass Diversified Hldgs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CODI#NYSE">CODI</a>) reported quarterly earnings of $0.53 per share which beat the analyst consensus estimate of $0.50 by 6 percent. The company reported quarterly sales of $542.595 million which missed the analyst consensus estimate of $550.120 million by 1.37 percent. This is a 3.52 percent increase over sales of $524.159 million the same period last year.

Earnings Beats

Earnings Misses

Compass Diversified Hldgs Q2 2024 Adj. EPS $0.53 Beats $0.50 Estimate, Sales $542.595M Miss $550.120M Estimate

Compass Diversified Holdings Sees Adj. EBITDA $480M-$520M

Compass Diversified Hldgs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CODI#NYSE">CODI</a>) reported quarterly earnings of $0.46 per share which beat the analyst consensus estimate of $0.44 by 4.55 percent. This is unchanged from the same period last year. The company reported quarterly sales of $524.290 million which missed the analyst consensus estimate of $540.053 million by 2.92 percent. This is a 8.34 percent increase over sales of $483.933 million the same period last year.

Compass Diversified Hldgs Q1 2024 Adj EPS $0.46 Beats $0.44 Estimate, Sales $524.290M Miss $540.053M Estimate

Asset Sales

Compass Diversified Announces Sale Of Crosman Air Gun Business; Proceeds Will Be Used To Pay Down Debt And For General Corporate Purposes

Although U.S. stocks closed mixed on Wednesday, there were a few notable insider trades.
When insiders purchase shares, it indicates their confidence in the company&#39;s prospects or that they view the stock as a bargain. Either way, this signals an opportunity to go long on the stock. Insider purchases should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a buying decision.
Below is a look at a few recent notable insider purchases. For more, check out <a href="https://www.benzinga.com/sec/insider-trades/"> Benzinga&#39;s insider transactions </a> platform.
<h3>Flowers Foods </h3>
<ul>
<li>The Trade: Flowers Foods, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/flo#NYSE">FLO</a>) Director Edward J.. Casey Jr <a href="https://www.benzinga.com/quote/FLO/analyst-ratings"> acquired a total of 5,000 shares </a> an average price of $23.55. To acquire these shares, it cost around $117,750.</li>
<li>What&rsquo;s Happening: On Feb. 8, Flowers Foods posted downbeat quarterly earnings.</li>
<li>What Flowers Foods Does: Flowers Foods Inc is an American company producing bakery food for retail and foodservice across the United States.</li>
</ul>
<h3>Compass Diversified </h3>
<ul>
<li>The Trade: Compass Diversified (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/codi#NYSE">CODI</a>) Ryan J Faulkingham acquired a total of 4,250 shares at an average price of $23.46. To acquire these shares, it cost around $99,725.</li>
<li>What&rsquo;s Happening: On March 19, Citi Trends reported worse-than-expected fourth-quarter financial results.</li>
<li>What Compass Diversified Does: Compass Diversified Holdings is a diversified business conglomerate based in the United States having two groups: branded consumer business and industrial business.</li>
</ul>
Don&rsquo;t forget to check out our <a href="https://www.benzinga.com/premarket/"> premarket coverage here </a> 
<h3>CVD Equipment </h3>
<ul>
<li>The Trade: CVD Equipment Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cvv#NASDAQ">CVV</a>) 10% owner ADA Partners, L.P. <a href="https://www.benzinga.com/sec/insider-trades/"> bought a total of 217,554 shares </a> at an average price of $5.02. To acquire these shares, it cost around $1.08 million.</li>
<li>What&rsquo;s Happening: On March 28, CVD Equipment posted a loss for the fourth quarter.</li>
<li>What CVD Equipment Does: CVD Equipment Corp is engaged in the manufacturing of chemical vapor deposition equipment, customized gas control systems, the manufacturing of process equipment suitable for the synthesis of a variety of one-dimensional nanostructures and nanomaterials and a line of furnaces, all of which are used to produce semiconductors and other electronic components.</li>
</ul>
<h3>Ross Stores </h3>
<ul>
<li>The Trade: Ross Stores, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rost#NASDAQ">ROST</a>) President, CMO DD&#39;S Discounts Karen Fleming <a href="https://www.benzinga.com/sec/insider-trades/"> bought a total of 3,482 shares </a> at an average price of $147.51. The insider spent around $5,230 to buy those shares.</li>
<li>What&rsquo;s Happening: On March 5, Ross Stores reported better-than-expected fourth-quarter results.</li>
<li>What Ross Stores Does: Ross Stores operates as an off-price apparel and accessories retailer with the majority of its sales derived from its Ross Dress for Less banner.</li>
</ul>
&nbsp;
Check This Out: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/04/38067893/these-3-real-estate-stocks-with-over-3-dividend-yields-are-recommended-by-wall-streets-m"> These 3 Real Estate Stocks With Over 3% Dividend Yields Are Recommended By Wall Street&#39;s Most Accurate Analysts </a>
&nbsp;

B of A Securities analyst Derek Hewett maintains Compass Diversified Hldgs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CODI#NYSE">CODI</a>) with a Buy and raises the price target from $27 to $30.

Price Target

Analyst Ratings

B of A Securities Maintains Buy on Compass Diversified Hldgs, Raises Price Target to $30

Oppenheimer analyst Mitchel Penn maintains Compass Diversified Hldgs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CODI#NYSE">CODI</a>) with a Perform and raises the price target from $21 to $23.

Oppenheimer Maintains Perform on Compass Diversified Hldgs, Raises Price Target to $23

Compass Diversified Hldgs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CODI#NYSE">CODI</a>) reported quarterly earnings of $0.53 per share which beat the analyst consensus estimate of $0.39 by 35.9 percent. The company reported quarterly sales of $566.99 million which missed the analyst consensus estimate of $576.55 million by 1.66 percent. This is a 7.04 percent increase over sales of $529.68 million the same period last year.

Compass Diversified Hldgs Q4 2023 Adj EPS $0.53 Beats $0.39 Estimate, Sales $566.99M Miss $576.55M Estimate

Although U.S. stocks closed mixed on Friday, there were a few notable insider trades.
When insiders purchase shares, it indicates their confidence in the company&#39;s prospects or that they view the stock as a bargain. Either way, this signals an opportunity to go long on the stock. Insider purchases should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a buying decision.
Below is a look at a few recent notable insider purchases. For more, check out <a href="https://www.benzinga.com/sec/insider-trades/"> Benzinga&#39;s insider transactions </a> platform.
<h3>Compass Diversified </h3>
<ul>
<li>The Trade: Compass Diversified (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/codi#NYSE">CODI</a>) Elias Sabo <a href="https://www.benzinga.com/quote/CODI/analyst-ratings"> acquired a total of 90,000 shares </a> an average price of $22.62. To acquire these shares, it cost around $2.04 million.</li>
<li>What&rsquo;s Happening: Compass Diversified announced a $380 million deal with The Honey Pot Co..</li>
<li>What Compass Diversified Does: Compass Diversified, based in Westport, Connecticut, is a private equity firm specializing in add on acquisitions, buyouts, industry consolidation, recapitalization, late stage and middle market investments.</li>
</ul>
<h3>NBT Bancorp </h3>
<ul>
<li>The Trade: NBT Bancorp Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nbtb#NASDAQ">NBTB</a>) EVP &amp; Chief Financial Officer Scott A. Kingsley acquired a total of 1,000 shares at an average price of $36.80. To acquire these shares, it cost around $36,800.</li>
<li>What&rsquo;s Happening: NBT Bancorp posted downbeat quarterly earnings.</li>
<li>What NBT Bancorp Does: NBT Bancorp Inc is a financial holding company that operates through its subsidiaries.</li>
</ul>
Don&rsquo;t forget to check out our <a href="https://www.benzinga.com/premarket/"> premarket coverage here </a> 
<h3>PBF Energy </h3>
<ul>
<li>The Trade: PBF Energy Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pbf#NYSE">PBF</a>) 10% owner Control Empresarial de Capitales S.A. de C.V. <a href="https://www.benzinga.com/sec/insider-trades/"> bought a total of 12,200 shares </a> at an average price of $43.86. To acquire these shares, it cost around $535,133.</li>
<li>What&rsquo;s Happening: Piper Sandler analyst Ryan Todd recently downgraded PBF Energy from Overweight to Neutral and lowers the price target from $65 to $50.</li>
<li>What PBF Energy Does: PBF Energy Inc is an independent petroleum refiner and supplier of unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants, and other petroleum products in the United States.</li>
</ul>
&nbsp;
Check This Out: <a href="https://www.benzinga.com/news/earnings/24/01/36819476/f5-likely-to-report-higher-q1-earnings-these-most-accurate-analysts-revise-forecasts-ahead-of-earni"> F5 Likely To Report Higher Q1 Earnings; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call </a>

By the close of today, January 25, 2024, Compass Diversified Hldgs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CODI#NYSE">CODI</a>) will issue a dividend payout of $0.25 per share, resulting in an annualized dividend yield of 4.51%. This payout is exclusively for shareholders who held the stock before the ex-dividend date on January 17, 2024.
<h3>Compass Diversified Hldgs Recent Dividend Payouts</h3>
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<thead>
<tr>
<th>Ex-Date</th>
<th style="text-align: right;">Payments per year</th>
<th>Dividend</th>
<th>Yield</th>
<th>Announced</th>
<th>Record</th>
<th>Payable</th>
</tr>
</thead>
<tbody>
<tr>
<td>2024-01-17</td>
<td style="text-align: right;">4</td>
<td>$0.25</td>
<td>4.51%</td>
<td>2024-01-04</td>
<td>2024-01-18</td>
<td>2024-01-25</td>
</tr>
<tr>
<td>2023-10-18</td>
<td style="text-align: right;">4</td>
<td>$0.25</td>
<td>5.4%</td>
<td>2023-10-03</td>
<td>2023-10-19</td>
<td>2023-10-26</td>
</tr>
<tr>
<td>2023-07-19</td>
<td style="text-align: right;">4</td>
<td>$0.25</td>
<td>4.64%</td>
<td>2023-07-05</td>
<td>2023-07-20</td>
<td>2023-07-27</td>
</tr>
<tr>
<td>2023-04-19</td>
<td style="text-align: right;">4</td>
<td>$0.25</td>
<td>5.24%</td>
<td>2023-04-03</td>
<td>2023-04-20</td>
<td>2023-04-27</td>
</tr>
<tr>
<td>2023-01-18</td>
<td style="text-align: right;">4</td>
<td>$0.25</td>
<td>5.2%</td>
<td>2023-01-04</td>
<td>2023-01-19</td>
<td>2023-01-26</td>
</tr>
<tr>
<td>2022-10-19</td>
<td style="text-align: right;">4</td>
<td>$0.25</td>
<td>5.45%</td>
<td>2022-10-04</td>
<td>2022-10-20</td>
<td>2022-10-27</td>
</tr>
<tr>
<td>2022-07-20</td>
<td style="text-align: right;">4</td>
<td>$0.25</td>
<td>4.67%</td>
<td>2022-07-01</td>
<td>2022-07-21</td>
<td>2022-07-28</td>
</tr>
<tr>
<td>2022-04-20</td>
<td style="text-align: right;">4</td>
<td>$0.25</td>
<td>4.21%</td>
<td>2022-04-01</td>
<td>2022-04-21</td>
<td>2022-04-28</td>
</tr>
<tr>
<td>2022-01-12</td>
<td style="text-align: right;">4</td>
<td>$0.25</td>
<td>3.27%</td>
<td>2022-01-03</td>
<td>2022-01-13</td>
<td>2022-01-20</td>
</tr>
<tr>
<td>2021-10-14</td>
<td style="text-align: right;">4</td>
<td>$0.36</td>
<td>5.09%</td>
<td>2021-10-05</td>
<td>2021-10-15</td>
<td>2021-10-22</td>
</tr>
<tr>
<td>2021-07-14</td>
<td style="text-align: right;">4</td>
<td>$0.36</td>
<td>5.6%</td>
<td>2021-07-02</td>
<td>2021-07-15</td>
<td>2021-07-22</td>
</tr>
<tr>
<td>2021-04-14</td>
<td style="text-align: right;">4</td>
<td>$0.36</td>
<td>6.22%</td>
<td>2021-04-01</td>
<td>2021-04-15</td>
<td>2021-04-22</td>
</tr>
</tbody>
</table>
Compass Diversified Hldgs's dividend yield falls in the middle range when compared to its industry peers, with UWM Hldgs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UWMC#NYSE">UWMC</a>) having the highest annualized dividend yield at 6.24%.
<h3>Analyzing Compass Diversified Hldgs Financial Health</h3>
Companies that pay out steady cash dividends are attractive to income-seeking investors, and companies that are financially healthy tend to maintain their dividend payout schedule. For this reason, investors can find it insightful to see if a company has been increasing or decreasing their dividend payout schedule and if their earnings are growing. 
<h3>YoY Growth in Dividend Per Share</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1706195104_0.png" alt="dividend chart graph" />
As you can see, from 2020 to 2023, investors saw an average decrease in the company's dividend per share, decreasing from $1.44 in 2020 to $1.00 in 2023. This is not favorable for investors as it indicates a decline in the company's dividend payout over the years. Further analysis is recommended to understand the factors contributing to this decrease.
<h3>YoY Earnings Growth For Compass Diversified Hldgs</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1706195104_1.png" alt="earning chart graph" />
From 2020 to 2023, Compass Diversified Hldgs has demonstrated an upward trend in earnings, with earnings per share rising from $-0.72 to $1.92. This positive earnings growth bodes well for investors looking to generate income through cash dividend payouts.
<h3>Recap</h3>
This article delves into the recent dividend payout of Compass Diversified Hldgs and its implications for shareholders. Presently, the company is distributing a dividend of $0.25 per share, leading to an annualized dividend yield of 4.51%.
Compass Diversified Hldgs's dividend yield falls in the middle range when compared to its industry peers, with UWM Hldgs having the highest annualized dividend yield at 6.24%.
With dividend per share decreasing and earnings per share increasing from 2020 to 2023, Compass Diversified Hldgs appears to be emphasizing business growth by reinvesting profits rather than focusing on dividend distributions.
Keeping a close watch on the company's performance in the coming quarters will enable investors to stay abreast of any modifications in financials or dividend disbursements.
\To stay up-to-date with the companies that are announcing their dividends, <a href="https://www.benzinga.com/calendars/dividends">click here</a> to visit our Dividends Calendar. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Dividends

UWMC

Compass Diversified Hldgs: Bolstering Investor Value with Reduced Dividends and Amplified Earnings

Compass Diversified (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CODI#NYSE">CODI</a>) (&quot;CODI&quot; or the &quot;Company&quot;), an owner of leading middle market businesses, today announced that it has entered into a definitive agreement to partner with The Honey Pot Company, LLC (&quot;The Honey Pot Co.&quot;), a leading &quot;better-for-you&quot; feminine care brand, for an enterprise value of&nbsp;$380 million&nbsp;(excluding working capital and certain other adjustments upon closing). The Honey Pot Co. will continue to be led by its current leadership team, and existing owners and management will retain a significant minority stake in the company.

Compass Diversified Strikes $380M Deal with The Honey Pot Co., Backing a Feminine Care Revolution

Tuesday marks the last chance for investors to receive the next dividend payout from Compass Diversified Hldgs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CODI#NYSE">CODI</a>). 
<h3>What's Happening</h3>
The company announced on Thursday that it would pay shareholders a quarterly dividend of 25 cents per share. On Wednesday, Compass Diversified Hldgs will go ex-dividend, meaning the stock will trade lower to reflect that payout. In other words, the stock will likely open 25 cents lower than it would have opened on any other day.
In order to be eligible to receive a company's dividend, shareholders must own the stock prior to the ex-dividend date—in this case, Wednesday. Shareholders who own CODI as of the end of Tuesday's session are eligible to receive the 25 cents dividend payout for every share that they own. 
According to the company, this dividend will be paid out to shareholders on January 25, 2024. Investors will then be able to either reinvest those dividends back into the stock or use the payment in some other way. 
<a href="https://www.benzinga.com/stock//dividends">Click here</a> to find details on Compass Diversified Hldgs's previous dividends.
To keep track of which companies are distributing dividends, <a href="https://www.benzinga.com/calendars/dividends">click here</a> to visit our Dividends Calendar.

Compass Diversified Hldgs: Dividend Insights

Financing

Compass Diversified Completed A Private Placement Of ~3.6M Of Its Common Shares To A Mutual Fund Managed By Allspring Global Investments For $21.18/Share, Or An Aggregate Sale Price Of ~$75.2M

Fox Factory Holding Corp&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/foxf#NASDAQ">FOXF</a>) shares are dipping by 20% today after it reported&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/pressreleases/23/11/g35575857/fox-factory-holding-corp-reports-third-quarter-fiscal-2023-financial-results-and-announces-agreeme" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">Q3 FY23 results</a>.
Net sales declined 19.1% Y/Y to $331.1 million, missing the consensus of $398.3 million owing to a decrease of 58.6% in Specialty Sports Group, partially offset by an increase of 12.4% in Powered Vehicles Group and 8.2% in Aftermarket Applications Group.
Gross margin contracted 110 bps Y/Y to 32.4% due to a shift in product line mix and costs related to keeping the skilled workforce as production slowed due to the UAW strike.
Adjusted EBITDA fell to $63.7 million from $85.1 million the prior year, with a margin of 19.2% vs. 20.8% the prior year.
Adjusted EPS of $1.05 missed&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/calendars/earnings" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">the consensus of $1.10</a>.
As of September 29, 2023, cash and cash equivalents of $90.6 million.
Repurchase: The Board of Directors authorized a share repurchase plan for up to $300 million common shares.
FY23 Outlook: For Q4, FOXF expects net sales of $300 million-$340 million (vs. consensus: $454.66 million) and adjusted EPS of $0.75 to $1.00&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/calendars/guidance" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">(vs. $1.43 street view)</a>.&nbsp;
For FY23, the company expects net sales at the low end of $1.43 billion-$1.47 billion (vs. $1.65 billion) and adjusted EPS at the low end of the range of $4.20-$4.45 (vs. $4.95 estimate).
Acquisition: FOXF disclosed the purchase of Marucci Sports, LLC from&nbsp;Compass Diversified Holdings&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/codi#NYSE">CODI</a>)<a class="editor-rtfLink" href="https://www.benzinga.com/pressreleases/23/11/g35575887/compass-diversified-announces-sale-of-marucci-sports-for-572-million" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">&nbsp;for $572 million.</a>
The company projects Marucci to be accretive to both growth and EBITDA margins, driving to achieve the 2025 target of $2.0 billion in sales and 25% adjusted EBITDA margin.&nbsp;
The transaction is expected to close in November 2023, subject to customary closing conditions.
Price Action: FOXF shares are down 17% at $69.00 premarket on the last check Friday.

Why Are Automobile Components Maker Fox Factory's Shares Tumbling Today?

Compass Diversified (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CODI#NYSE">CODI</a>) ("CODI" or the "Company"), an owner of leading middle market businesses, announced today it has entered into a definitive agreement (the "Agreement") to sell its majority owned subsidiary, Wheelhouse Holdings, Inc., the parent company of Marucci Sports, LLC ("Marucci"), to Fox Factory Holding Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FOXF#NASDAQ">FOXF</a>) ("FOX"), a designer and manufacturer of performance-defining ride dynamics products primarily for a wide range of bicycles, on-road and off-road vehicles. &nbsp;
Under the terms of the Agreement, Marucci will be sold to FOX for an enterprise value of $572 million, subject to certain working capital and other adjustments. CODI expects to realize a pre-tax gain on the sale of between $225 million to $245 million. Proceeds from the transaction will be used to pay down outstanding debt and for general corporate purposes.
"We are very proud of the growth Marucci has seen under our ownership and feel fortunate to have been able to partner with the Marucci management team," said Elias Sabo, CEO of Compass Diversified. "We acquired the business in April 2020 based on our confidence in Marucci's brand and management team. This was at a time when few transactions were being completed due to the pandemic, yet our flexible capital structure allowed us to execute in times of uncertainty and generate value for our shareholders. Since then, the Marucci team has acted decisively, growing its core business and gaining share in new markets like fielding gloves and softball. Additionally, we expanded the Marucci product portfolio through the acquisitions of Lizard Skins and Baum Bat. Thank you to Kurt and the entire Marucci team for their contributions over the last several years, and we wish them nothing but continued success."
Kurt Ainsworth, Co-Founder and CEO of Marucci Sports, commented: "We are grateful for our partnership with the CODI team and look forward to further growth under FOX's ownership. FOX's enthusiast culture, coupled with its focus on driving growth through strong brands, highly engineered products and disruptive technologies fits well with our values and mission. We look forward to leveraging their innovation and growth success as we expand our sales reach and breadth. We thank CODI for their relentless support during our partnership."
The closing of this transaction is subject to customary terms and conditions, including regulatory approval, and is expected to occur in November 2023.
Jefferies LLC is acting as exclusive financial advisor and Ropes &amp; Gray LLP and Jones Walker LLP are acting as legal counsel to CODI. Squire Patton Boggs (US) LLP is acting as legal counsel to FOX.

Compass Diversified Announces Sale Of Marucci Sports To Fox Factory Holding Corp. For $572M

Compass Diversified Hldgs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CODI#NYSE">CODI</a>) reported quarterly earnings of $0.57 per share which beat the analyst consensus estimate of $0.42 by 35.71 percent. This is a 10.94 percent decrease over earnings of $0.64 per share from the same period last year. The company reported quarterly sales of $569.57 million which missed the analyst consensus estimate of $574.80 million by 0.91 percent. This is a 4.69 percent decrease over sales of $597.61 million the same period last year.

Compass Diversified Hldgs Q3 2023 Adj EPS $0.57 Beats $0.42 Estimate, Sales $569.57M Miss $574.80M Estimate

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