Compass Diversified Holdings, an owner of leading middle market businesses, announced today that Joe Massoud, its Chief Executive Officer, has requested, and the Board has approved, a leave of absence to focus his attention on an informal regulatory inquiry that Mr. Massoud has received on matters unrelated to CODI. CODI also announced that its manager, Compass Group Management LLC ("CGM"), has nominated, and that its Board has approved, Alan Offenberg to assume the role of CEO on an interim basis, as well as Mr. Massoud's seat on the Company's Board of Directors. Commenting on the transition, Mr. Offenberg said, "I am honored to be able to serve CODI's shareholders in this capacity. Joe will continue to be available to us during his leave and we are all very excited about the many opportunities the Company has to build value for our owners."
Mr. Offenberg has been a partner with CGM and its predecessor since 1998. Prior to that, Mr. Offenberg was with Trigen Energy, Creditanstalt Bankverein and GE Capital. Mr. Offenberg is a graduate of Tulane Universityand the Northeastern University Graduate School of Business. Mr. Offenberg is currently a director and chair of American Furniture Manufacturing, Inc. and Liberty Safe and Security Products, Inc.
The stock sold off this morning, and bounced around most of the day. I took the opportunity to add shares today at $16.52. Although Massoud is integral to this company, he will still be available to management. They have an awesome portfolio of companies, and they are only getting stronger. I want to hold this company for a long, long time, and when you get opportunities to buy shares at a discount, that's what you hope to do as a value investor. They report earnings in early March, and I expect strong results.
The market continues to be quite strong, and I'm a bit cautious, but quite optimistic for returns for 2011.
Disclosure: Long CODI