Company: CODI-PB
Filing Date: 2025-12-08
Form Type: 10-K/A
Source: 0001345126-25-000078
Chunk: 312

Company: Compass Diversified Holdings
Filing Date: 2025-12-08
Form: 10-K/A
Chunk 312
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 was terminated during the period ended March 31, 2023.

(2) Velocity entered into a contingent consideration in connection with its purchase of King's Camo in July 2022. The purchase price of King's Camo included a potential earn-out if King's Camo achieved certain financial metrics. The payment of the earn-out occurred in April 2023.

Valuation Techniques

Options of noncontrolling shareholders

The put option of noncontrolling shareholders was determined based on inputs that were not readily available in public markets or able to be derived from information available in publicly quoted markets. As such, the Company categorized the put option of the noncontrolling shareholders as Level 3. The primary inputs associated with this valuation were earnings before interest, taxes amortization and depreciation times a multiple established in the shareholder put option agreement, which was used to determine a per share equity value for the shares that could be put back to the Company. The put option was terminated during the period ended March 31, 2023.

Contingent Consideration

For certain acquisition of businesses that the Company or its subsidiaries make, a portion of the acquisition price w ill be contingent consideration. The following is a summary of the contingent consideration arrangements entered into by the Company's subsidiaries in the prior three years and the valuation methodologies:

• Velocity entered into a contingent consideration arrangement in connection with their purchase of King's Camo in J uly 2022. The purchase price of King's Camo included a potential earn-out of $ 3.0million if King's Camo achieved certain financial metrics. The contingent consideration was valued at $ 1.6million using probability weighted models. The earnout was reduced to $ 1.3million at December 31, 2022 based on the expected payout amount. The payment of the earn-out occurred in April 2023.

• Altor Solutions entered into a contingent consideration arrangement in connection with their purchase of Polyfoam in July 2020. The purchase price of Polyfoam included a potential earn-out of $ 1.4million if Polyfoam achieved certain financial metrics. The payment of the earn-out occurred on March 31, 2022.

Senior Notes

The Company's Senior Notes consisted of the following carrying value and estimated fair value (in thousands):

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