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Activist ADW Capital Pushes Compass Diversified for Liquidation
ADW Capital, which owns 19.3% of Compass Diversified, is calling for a strategic review and orderly liquidation, threatening a proxy contest if the board doesn't engage.
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ADW Capital Management, which beneficially owns 19.3% of Compass Diversified (CODI) through shares and stock options, sent an open letter to the board Tuesday demanding a strategic review and an orderly liquidation of the company.
The investment firm, founded by Adam Wyden in 2010, said internalizing the external manager could create $50 to $60 per share in value. ADW also argued that several board members lack true independence due to relationships with the external manager, creating conflicts of interest.