Company: CODI-PB
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001345126-25-000015
Chunk: 228

Company: Compass Diversified Holdings
Filing Date: 2025-02-27
Form: 10-K
Item: Item 16
Chunk 228
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 the Company received approximately $99.1 million of total proceeds at closing. This amount was in respect of its debt and equity interests in Ergobaby (which was acquired by the Company on September 16, 2010) and the payment of accrued interest. The Company recorded a pre-tax gain on the sale of Ergobaby of $6.1 million. The proceeds from the Ergo sale were used to pay down outstanding debt under the Company’s Revolving Credit facility. 

F-24

COMPASS DIVERSIFIED HOLDINGSNOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

Summarized results of operations of Ergo for the previous years through the date of disposition are as follows (in thousands):For the period January 1, 2024 through dispositionYear ended December 31, 2023Year ended December 31, 2022Net sales$93,213 $93,859 $88,435 Gross profit60,091 60,320 54,430 Operating income (loss)(5,461)4,820 (16,814)Income (loss) from operations before income taxes (1) (5,526)4,784 (16,830)Provision (benefit) for income taxes1,379 (1,308)(4,274)Income (loss) from discontinued operations (1)$(6,905)$6,092 $(12,556)(1) The results of operations for the periods from January 1, 2024 through disposition and the years ended December 31, 2023 and 2022, each exclude $8.8 million, $8.7 million and $6.1 million, respectively, of intercompany interest expense.The following table presents summary balance sheet information of Ergo that is presented as discontinued operations as of December 31, 2023 (in thousands):December 31,2023AssetsCash and cash equivalents$3,793 Accounts receivable, net10,058 Inventories, net17,193 Prepaid expenses and other current assets5,871 Current assets of discontinued operations$36,915 Property, plant and equipment, net1,279 Goodwill41,521 Intangible assets, net44,827 Other non-current assets256 Non-current assets of discontinued operations$87,883 LiabilitiesAccounts payable$2,323 Accrued expenses6,013 Other current