Core Insights - The Honey Pot Company has appointed Janis Smith-Gomez as Chair of its Board of Directors, effective January 1, 2026, highlighting a strategic leadership change within the company [1][3] Company Overview - The Honey Pot Co. is a leading feminine care brand founded in 2012, focusing on plant-derived ingredients and clinically tested formulas [4] - The company offers a wide range of holistic wellness products across various categories, including feminine hygiene, menstrual care, personal care, and sexual wellness [4] - The Honey Pot Co. aims to educate and support consumers globally regarding menstrual health and vaginal wellness, with products available in over 33,000 stores in the U.S. [4] Leadership Background - Janis Smith-Gomez has extensive experience in commercial and marketing roles, having worked at Johnson & Johnson and other major consumer goods companies [2] - Her previous roles include Vice President of US Marketing for Johnson & Johnson's skin health and beauty portfolio and Vice President of Global Brand Experience for its Medical Devices division [2] - Smith-Gomez's educational background includes a B.A. and an M.B.A. from the University of Chicago [2] Strategic Vision - The leadership transition is expected to enhance the company's growth and brand development, aligning with its mission of promoting human health and wellness [3] - The Honey Pot Co. emphasizes a purpose-driven approach, aiming to empower women and lead conversations around feminine health through education [3]

Summary of Compass Diversified (NYSE:CODI) Conference Call on January 16, 2026 Company Overview - **Company**: Compass Diversified (Cody) - **Acquisition Target**: The Honeypot Company, a leading feminine care brand - **Transaction Value**: $380 million enterprise value, excluding working capital adjustments [doc id='15'] Key Points and Arguments Acquisition Announcement - Cody has entered into a definitive agreement to acquire The Honeypot Company, which is recognized for its innovative and effective feminine care products [doc id='4'] - The acquisition aligns with Cody's strategy of acquiring high-free cash flow businesses and expanding into the personal care sector [doc id='4'][doc id='5'] Competitive Advantages - Cody's lower-weighted average cost of capital, supported by long-term unsecured bonds, enables it to acquire quality businesses while competitors are sidelined [doc id='5'] - A recent $75.2 million equity investment from Allspring Global Investments has provided the necessary capital for this acquisition [doc id='5'] Honeypot Company Overview - Honeypot is positioned as a premium feminine care brand with a complete care system of clinically tested products [doc id='8'] - The brand has achieved over 50% gross sales CAGR since 2020, with estimated gross sales exceeding $121 million and adjusted EBITDA of approximately $29 million for the trailing 12 months [doc id='14'] - The company has a strong retail presence, with distribution in over 33,000 doors, including major retailers like Target and Walmart [doc id='22] Market Potential - The addressable market for Honeypot is valued at over $17 billion, indicating significant growth potential [doc id='12'] - Despite being the fifth-largest feminine care brand, Honeypot's brand awareness and household penetration are low compared to legacy competitors, presenting an opportunity for accelerated growth through increased marketing efforts [doc id='13'] Growth Strategy - Honeypot plans to expand its product offerings and distribution channels, including entering the club channel and enhancing its e-commerce presence [doc id='10][doc id='20'] - The company aims to leverage its innovative product development and marketing strategies to capture market share from stagnant legacy brands [doc id='11'] Financial Outlook - Honeypot's business model benefits from low capital expenditure (CapEx) requirements, with CapEx around 2% of net sales, and a strong free cash flow profile [doc id='15] - The acquisition is expected to be funded entirely with cash on hand, with a projected total outstanding indebtedness of approximately $1.7 billion post-transaction [doc id='16] Management and Cultural Fit - The management team of Honeypot, led by co-founder and CEO Beatrice Dixon, will continue to lead the company post-acquisition, ensuring continuity and alignment with Cody's values [doc id='15][doc id='28] - Cody emphasizes a long-term partnership approach with management teams, which is crucial for the success of the acquisition [doc id='6] Market Dynamics - The current market conditions for consumer products are weak, allowing Cody to acquire Honeypot at a favorable valuation compared to historical multiples for similar wellness brands [doc id='31] - The acquisition is seen as a strategic move to capitalize on the growing demand for better-for-you products in the feminine care market [doc id='31] Additional Important Insights - The acquisition reflects Cody's strategy of identifying middle-market leaders and supporting them in achieving their growth potential [doc id='11] - The focus on consumer education and destigmatization of feminine health issues is a core part of Honeypot's brand strategy, resonating particularly with younger consumers [doc id='12][doc id='26] This summary encapsulates the key points discussed during the conference call, highlighting the strategic acquisition of The Honeypot Company and its implications for Compass Diversified's growth trajectory in the personal care market.

The Honey Pot Company Overview - The Honey Pot Company emerged in 2012 as a leading holistic feminine care brand powered by herbs[8] - The company addresses unmet needs in the feminine care industry, such as the lack of a human-first approach, inclusivity, transparency, and efficacy[9] - The brand offers a complete feminine care system powered by herbs, focusing on efficacy, community, and normalizing the normal[10] Product Portfolio and Strategy - The Honey Pot Co has 31 SKUs in personal care, 11 SKUs in menstrual needs, and 20 SKUs in consumer health & sexual wellness[13,15,17] - The company uses plant-derived ingredients and formulas designed for efficacious results, supported by clinical testing[11,19] - The brand employs a retailer-first strategy, with a strong presence in mass retail and whitespace opportunity in grocery, drug, club, and eCommerce[20] Market Position and Financials - The Honey Pot Co is an innovation leader in the growing "better-for-you" feminine wellness market[24] - The company estimates to have only 4.5% household penetration[25,28] - The company has approximately $121 million in gross sales and approximately $29 million of adjusted EBITDA[33] - The company has experienced approximately 54% gross sales CAGR since 2020[34] Transaction Details - CODI will acquire The Honey Pot Co at a $380 million enterprise value, with $347 million funded by CODI[39]

Financial Data and Key Metrics Changes - For Q3 2025, net sales were $472.6 million, an increase of 3.5% year-over-year. Year-to-date consolidated net sales reached $1.4 billion, up 8.6% over the prior year, or 6.1% excluding the impact of Lugano [13][14] - The GAAP net loss for the quarter was $87.2 million, which includes expenses related to the Lugano investigation and operations [13] - Year-to-date subsidiary-adjusted EBITDA was $257 million, an increase of 5.8% over 2024 [15] Business Line Data and Key Metrics Changes - In the consumer vertical, sales grew 3.1%, driven by strong growth at The Honeypot, while BOA's sales declined slightly due to exiting a lower-value business in China [14][15] - The industrial vertical saw a 10.5% increase in sales, primarily due to Altor's acquisition of Lifoam, although Arnold faced near-term headwinds from geopolitical uncertainties [14][15] Market Data and Key Metrics Changes - The consumer market experienced low single-digit growth, while the industrial market delivered mid-single-digit growth [9][10] - The rare earth magnetics market faced disruptions due to export restrictions from China, impacting Arnold's performance but creating long-term growth opportunities [10][11] Company Strategy and Development Direction - The company is focused on reducing leverage to mitigate risk and ensure long-term financial flexibility while also aiming to return capital to shareholders [12] - There is a commitment to executing strategic transactions, including potential divestitures, to maximize shareholder value [30] Management's Comments on Operating Environment and Future Outlook - The management noted that 2025 was marked by uncertainty due to geopolitical risks and a fluid tariff environment, but they expect to return to growth in 2026 [8][40] - Management expressed confidence in the long-term growth potential of Arnold, particularly as customers seek more stable supply chains for rare earth materials [73] Other Important Information - The company has restored compliance with SEC filings and credit facility requirements, allowing for a return to normal operations [4] - The management team has undergone changes, with Zach Sawtelle stepping into the COO role following Pat Maciariello's retirement [5][6] Q&A Session Summary Question: Performance of The Honeypot - Management indicated that The Honeypot is outperforming expectations due to increased shelf space and successful product launches in new categories [24][26] Question: Asset Divestiture Strategy - Management stated that all businesses are available for sale if the valuation is attractive, emphasizing a disciplined approach to divestments [28][30] Question: Economic Outlook - Management acknowledged a slowdown in growth but remains optimistic about future performance, expecting to achieve organic growth and free cash flow in 2026 [36][42] Question: Supply Chain Disruptions at Arnold - Management noted that supply chain disruptions from China are beginning to normalize, with expectations for improved performance in 2026 [71][73] Question: Free Cash Flow Expectations - Management anticipates generating between $50 million and $100 million of free cash flow in 2026, a significant improvement from previous years [83]