Compass Diversified (NYSE:CODI) ("CODI" or the "Company") today announced that Elias Sabo will retire as Chief Executive Officer and as a director of the Company on December 31, 2026. Zach Sawtelle has been appointed Chief Operating Officer of CODI and will succeed Mr. Sabo as its Chief Executive Officer and as a member of the Board of Directors upon Mr. Sabo's retirement. Mr. Sawtelle is currently a Partner and Chief Operating Officer at Compass Group Management LLC, the Company's external manager.

Mr. Sabo has been integral to CODI since its inception, including serving as CEO for the past eight years. He has been instrumental in building the organization into a differentiated permanent capital company with a diversified group of market-leading businesses. Under Mr. Sabo's leadership, CODI expanded its scale, strengthened its operating capabilities and navigated periods of significant growth as well as one of the most demanding chapters in the Company's history. Today, CODI is focused on executing its strategy, strengthening its balance sheet and realizing value for shareholders.

"On behalf of the Board, I want to thank Elias for his leadership and many contributions to CODI," said Larry Enterline, Chair of the Board of Directors. "With a clear strategy in place and a focus on disciplined execution, the Board is confident that this is the right time for an orderly leadership transition. Zach has deep knowledge of our businesses, a strong record of value creation and the discipline to lead CODI's next phase. We are confident in the Company's future under his leadership."

"Leading CODI has been the honor of my career," said Mr. Sabo. "I am proud of this team. We were tested this past year, and we met it with resilience and integrity. Our subsidiary businesses are performing, our balance sheet is healthier, and the path ahead is clear. I have known and worked with Zach for years. He is exceptional, he knows these businesses as well as anyone, and I have complete confidence in him. I will work alongside him to ensure a smooth transition to make sure CODI is set up to win in its next chapter."

"I am honored to take on this role and to succeed Elias as CEO upon his retirement," said Mr. Sawtelle. "I want to thank Elias for his partnership and I am excited to build upon the foundation he has created. I believe CODI has a significant opportunity ahead, and my focus will remain on disciplined execution, continued deleveraging and driving long-term value for shareholders. We will build on what works, while continuing to evolve."

Reaffirming Guidance and MSA Review

Collectively, CODI's businesses continue to perform well, with strong momentum across the Company's diversified group of subsidiaries. Reflecting this performance and the progress made against the priorities outlined earlier this year, CODI reaffirms its previously announced 2026 outlook. The Company remains focused on reducing leverage, maximizing the value of its subsidiaries, driving continued operational performance and closing the gap between CODI's share price and intrinsic value, including through the opportunistic return of capital to shareholders.

The Company also continues to advance its previously announced review of the Management Services Agreement, which is intended to further align incentives with shareholder interests and drive incremental shareholder value. CODI expects to complete this review in the coming weeks.