Company: CODI-PB
Filing Date: 2025-12-08
Form Type: 10-K/A
Source: 0001345126-25-000078
Chunk: 269

Company: Compass Diversified Holdings
Filing Date: 2025-12-08
Form: 10-K/A
Chunk 269
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 of the operating entity, Advanced Circuits, Inc., through a merger of ACI Merger Sub with and into Advanced Circuits, with Advanced Circuits surviving the merger and becoming a wholly owned subsidiary of ACI Purchaser (the “ACI Merger”). The ACI Merger was completed on February 14, 2023. The sale price of Advanced Circuits was based on an enterprise value of $ 220million, subject to certain adjustments based on matters such as the working capital and cash and debt balances of Advanced Circuits at the time of the closing. After the allocation of the sales price to Advanced Circuits non-controlling equity holders and the payment of transaction expenses, the Company received approximately $ 170.9million of total proceeds at closing, of which $ 66.9million related to the repayment of intercompany loans with the Company. We recorded a pre-tax gain on sale of $ 106.9million on the sale of Advanced Circuits in the year ended December 31, 2023.

Summarized results of operations of ACI for the previous years through the date of disposition are as follows (in thousands):

|                                                      |     |   | For the period January 1, 2023 through disposition |     |   | Year ended December 31, 2022 |
|:-----------------------------------------------------|:----|:--|---------------------------------------------------:|:----|:--|-----------------------------:|
| Net sales                                            |     | $ |                                              8,829 |     | $ |                       89,503 |
| Gross profit                                         |     |   |                                              3,663 |     |   |                       41,064 |
| Operating income                                     |     |   |                                              1,058 |     |   |                       23,617 |
| Income (loss) from operations before income taxes(1) |     |   |                                             -2,464 |     |   |                       23,349 |
| Provision (benefit) for income taxes                 |     |   |                                             -1,073 |     |   |                        3,616 |
| Income (loss) from discontinued operations(1)        |     | $ |                                             -1,391 |     | $ |                       19,733 |

(1) The results of operations for the periods from January 1, 2023 through disposition and the year ended December 31, 2022, each exclude $ 1.4million and $ 6.7