DMC Global Announces Strategic Alternatives Process for DynaEnergetics and NobelClad Businesses
29 January 2024 - 11:00PM
DMC Global Inc. (Nasdaq: BOOM) today announced its board of
directors (“the Board”) has initiated a review of strategic
alternatives for its DynaEnergetics and NobelClad businesses.
The strategic review process formalizes DMC’s
ongoing efforts over the past several months to consider
opportunities for unlocking shareholder value. The Board has
retained a financial advisor and may retain other advisors to
assist the Board in evaluating DMC’s current strategy, operations,
and capital structure. The Board will consider various strategic,
business, and financial alternatives for DMC’s DynaEnergetics and
NobelClad businesses. These could include, among other things, a
sale, a merger or other business combination of a portion of DMC’s
business-unit assets, and/or a strategic investment.
David Aldous, DMC’s chairman, said, “One year
ago, we began evaluating and developing new operating strategies
for our business units. Since Michael Kuta’s appointment as CEO
less than six months ago, we have been executing those strategies,
and now are focused on opportunities to maximize the value of our
portfolio with the help of our financial advisor.”
Aldous continued, “Arcadia Products is a core
division of DMC, and we are taking a very focused approach toward
maximizing its differentiated business model and capitalizing on
growth opportunities within its large addressable markets. Both
DynaEnergetics and NobelClad are valuable, industry-leading
businesses with strong margin profiles. However, the Board and
management team are aligned with the view expressed by many DMC
shareholders that the Company should seek to simplify its portfolio
to drive improved shareholder value. During the review process, the
Board and management team will continue to execute DMC’s strategy
and will remain very focused on running our businesses.”
The Board has not set a timetable to complete
the strategic review process. There can be no assurance that the
review process will result in any transactions. DMC does not intend
to disclose developments with respect to the review process until
such time as the Board has approved a specific course of action or
the Company otherwise deems disclosure required or appropriate.
About DMC GlobalDMC Global is
an owner and operator of innovative, asset-light manufacturing
businesses that provide unique, highly engineered products and
differentiated solutions. DMC’s businesses have established
leadership positions in their respective markets and consist of:
Arcadia, a leading supplier of architectural building products;
DynaEnergetics, which serves the global energy industry; and
NobelClad, which addresses the global industrial infrastructure and
transportation sectors. Based in Broomfield, Colorado, DMC trades
on Nasdaq under the symbol “BOOM.” For more information, visit:
HTTP://WWW.DMCGLOBAL.COM.
Safe Harbor LanguageThis news
release contains certain forward-looking statements regarding the
Company, including statements regarding its review of strategic
alternatives for its DynaEnergetics and NobleClad businesses. All
of these statements are based on management’s expectations as well
as estimates and assumptions prepared by management that, although
they believe to be reasonable, are inherently uncertain. These
statements involve risks and uncertainties, including, but not
limited to, economic, competitive, governmental and other factors
outside of the Company’s control that may cause its business,
industry, strategy, financing activities or actual results to
differ materially, and there can be no assurance regarding the
potential outcome or timing of the Company’s review of strategic
alternatives for its DynaEnergetics and NobelClad businesses. More
information on potential factors that could affect the Company and
its financial results is available in the “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” sections within the Company’s Annual Report
on Form 10-K for the year ended December 31, 2022, and in
other documents that the Company has filed with, or furnished to,
the U.S. Securities and Exchange Commission. The Company does not
undertake any obligation to release public revisions to any
forward-looking statement, including, without limitation, to
reflect events or circumstances after the date of this news
release, or to reflect the occurrence of unanticipated events,
except as may be required under applicable securities laws.
CONTACT:Investors:Geoff
HighVice President of Investor Relations303-514-0656
Media:Riyaz Lalani or Dan GagnierGagnier
Communications416-305-1459dmcglobal@gagnierfc.com
DMC Global (NASDAQ:BOOM)
Historical Stock Chart
From Apr 2024 to May 2024
DMC Global (NASDAQ:BOOM)
Historical Stock Chart
From May 2023 to May 2024