ADW Capital Management, which beneficially owns approximately 19.3% of Compass Diversified Holdings, has sent an open letter to the company's board reiterating its call for an immediate strategic review process and orderly liquidation. The letter argues that such a process is required to prevent further value destruction and cites ADW Capital analysis supporting potential value creation of $50 to $60 per share from internalization of the external manager. It also includes findings on board member relationships indicating a lack of true independence and the presence of conflicts. ADW Capital urges the board to engage with it or face a proxy contest.
Compass Diversified HoldingsActivist investor urges strategic review and liquidation, citing potential $50-$60 per share value creation.