DMC Global Enters Agreement to Extend Timing of Put Option on Arcadia Products Business
DMC Global (Nasdaq: BOOM) has reached an agreement with the Munera family, its Arcadia Products joint venture partners, to extend the put option exercise date to September 6, 2026. This modification delays the earliest date DMC can be required to purchase the remaining 40% of Arcadia, which was originally set for December 23, 2024. DMC maintains its call option right to acquire the remaining stake, exercisable from December 23, 2024.
The extension provides DMC relief from potential equity dilution and increased leverage that could have resulted from near-term satisfaction of the put obligation. The company plans to use this time to deleverage, explore strategic financing options, and improve performance of challenged businesses. Management will present new operating strategies and a simplified strategic plan focused on EBITDA growth, margin expansion, and cash conversion during the year-end earnings call in early 2025.
DMC Global (Nasdaq: BOOM) ha raggiunto un accordo con la famiglia Munera, i suoi partner nella joint venture Arcadia Products, per estendere la data di esercizio dell'opzione di vendita al 6 settembre 2026. Questa modifica ritarda la data più vicina in cui DMC può essere richiesta di acquistare il restante 40% di Arcadia, originariamente fissata per il 23 dicembre 2024. DMC mantiene il diritto di opzione di acquisto per acquisire la restante quota, esercitabile dal 23 dicembre 2024.
L'estensione offre a DMC un sollievo da una potenziale diluizione del capitale e da un aumento della leva finanziaria che potrebbe derivare dal soddisfacimento dell'obbligo di vendita a breve termine. La società prevede di utilizzare questo tempo per ridurre l'indebitamento, esplorare opzioni di finanziamento strategico e migliorare le performance delle imprese in difficoltà. La direzione presenterà nuove strategie operative e un piano strategico semplificato, incentrato sulla crescita dell'EBITDA, sull'espansione dei margini e sulla conversione di cassa durante la chiamata sugli utili di fine anno all'inizio del 2025.
DMC Global (Nasdaq: BOOM) ha alcanzado un acuerdo con la familia Munera, sus socios en la joint venture Arcadia Products, para extender la fecha de ejercicio de la opción de venta al 6 de septiembre de 2026. Esta modificación retrasa la fecha más temprana en que DMC puede ser requerida para comprar el 40% restante de Arcadia, que originalmente estaba fijada para el 23 de diciembre de 2024. DMC mantiene su derecho de opción de compra para adquirir la participación restante, que se puede ejercer a partir del 23 de diciembre de 2024.
La extensión proporciona alivio a DMC de una posible dilución de capital y de un aumento en el apalancamiento que podría haber resultado de la satisfacción a corto plazo de la obligación de venta. La compañía planea usar este tiempo para reducir su deuda, explorar opciones de financiación estratégicas y mejorar el desempeño de los negocios en dificultades. La dirección presentará nuevas estrategias operativas y un plan estratégico simplificado enfocado en el crecimiento del EBITDA, la expansión de márgenes y la conversión de efectivo durante la llamada de ganancias de fin de año a principios de 2025.
DMC Global (Nasdaq: BOOM)는 Arcadia Products 합작 투자 파트너인 Munera 가족과 함께 매각 선택권 행사 날짜를 2026년 9월 6일로 연장하는 계약을 체결했습니다. 이 수정은 DMC가 원래 2024년 12월 23일로 설정된 Arcadia의 나머지 40%를 구매해야 할 수 있는 가장 이른 날짜를 연기합니다. DMC는 2024년 12월 23일부터 행사 가능한 나머지 지분을 인수할 권리를 유지합니다.
이번 연장은 DMC가 단기적으로 매각 의무를 이행함으로써 발생할 수 있는 자본 희석 및 레버리지 증가로부터의 안도감을 제공합니다. 회사는 이 시간을 활용해 부채를 줄이고, 전략적 자금 조달 옵션을 탐색하며, 어려운 비즈니스의 성과를 개선할 계획입니다. 경영진은 2025년 초 연간 실적 발표 전화회의에서 EBITDA 성장, 마진 확대 및 현금 전환에 초점을 맞춘 새로운 운영 전략과 간소화된 전략 계획을 발표할 예정입니다.
DMC Global (Nasdaq: BOOM) a conclu un accord avec la famille Munera, ses partenaires dans le coentreprise Arcadia Products, pour prolonger la date d'exercice de l'option de vente jusqu'au 6 septembre 2026. Cette modification retarde la date à laquelle DMC pourrait être tenue d'acheter les 40% restants d'Arcadia, initialement prévue pour le 23 décembre 2024. DMC conserve son droit d'option d'achat pour acquérir la part restante, exerçable à partir du 23 décembre 2024.
Cette extension offre à DMC un soulagement face à une dilution potentielle des capitaux propres et à un accroissement de l'effet de levier qui pourrait découler d'un respect à court terme de l'obligation de vente. La société prévoit d'utiliser ce temps pour désendetter, explorer des options de financement stratégiques et améliorer la performance des entreprises en difficulté. La direction présentera de nouvelles stratégies opérationnelles et un plan stratégique simplifié axé sur la croissance de l'EBITDA, l'expansion des marges et la conversion de liquidités lors de l'appel sur les résultats de fin d'année début 2025.
DMC Global (Nasdaq: BOOM) hat eine Vereinbarung mit der Familie Munera, ihren Partnern im Joint Venture Arcadia Products, getroffen, um das Datum für die Ausübung der Verkaufsoption auf den 6. September 2026 zu verlängern. Diese Änderung verzögert das früheste Datum, an dem DMC verpflichtet werden kann, die verbleibenden 40% von Arcadia zu erwerben, das ursprünglich auf den 23. Dezember 2024 festgelegt war. DMC behält sich das Recht auf die Kaufoption vor, um den verbleibenden Anteil, der ab dem 23. Dezember 2024 ausgeübt werden kann, zu erwerben.
Die Verlängerung bietet DMC Erleichterung von potenzieller Eigenkapitalverwässerung und erhöhtem Hebel, die aus einer kurzfristigen Erfüllung der Verkaufsverpflichtung resultieren könnten. Das Unternehmen plant, diese Zeit zu nutzen, um Schulden abzubauen, strategische Finanzierungsoptionen zu erkunden und die Leistung von geschwächten Geschäftsbereichen zu verbessern. Das Management wird während der Telefonkonferenz zu den Jahresergebnissen Anfang 2025 neue Betriebsstrategien und einen vereinfachten strategischen Plan vorstellen, der sich auf das EBITDA-Wachstum, die Margenexpansion und die Cash-Conversion konzentriert.
- Extension of put option deadline reduces immediate financial pressure
- Company maintains call option rights for remaining 40% stake
- Additional time provided for strategic financial planning and business improvement
- Current business performance challenges acknowledged
- Need for significant operational improvements in Arcadia
- Potential future leverage concerns
Insights
The extension of the put option timing for DMC Global's Arcadia Products stake represents a significant financial maneuver with positive implications for the company's near-term capital structure. By pushing the potential
This strategic move allows DMC to:
- Avoid immediate equity dilution that would have impacted existing shareholders
- Maintain better control over its debt levels
- Focus on operational improvements, particularly at Arcadia
- Develop a more strategic approach to eventual ownership consolidation
BROOMFIELD, Colo., Dec. 04, 2024 (GLOBE NEWSWIRE) -- DMC Global Inc. (Nasdaq: BOOM) today announced it has reached an agreement with its Arcadia Products, LLC (“Arcadia”) joint venture partners, the Munera family, that establishes September 6, 2026, as the earliest date DMC can be required to purchase the remaining
James O’Leary, interim president and CEO of DMC, said, “This amendment to Arcadia’s operating agreement provides DMC with immediate and significant relief from the potential equity dilution and increased leverage that could have resulted from the near-term satisfaction of the put obligation. DMC now has the time and flexibility to further deleverage, explore strategic financing options, and stabilize and improve the performance of certain of its businesses that have been challenged by either cyclical downturns or poor operating performance.
“In particular, we are focused on restoring Arcadia to the operating levels that we and our joint venture partners expect from this excellent business. We will discuss discrete operating strategies and a simplified and significantly more focused strategic plan on our year-end earnings call to be held in early 2025. Prospectively, our strategies, tactics and activities will be focused on EBITDA growth, margin expansion and cash conversion.”
About DMC Global Inc.
DMC 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 Language
This news release contains certain forward-looking statements regarding the Company. 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. 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, 2023, 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:
Geoff High
Vice President of Investor Relations
303-604-3924
FAQ
When is the new put option exercise date for DMC Global's (BOOM) Arcadia stake?
What percentage of Arcadia does DMC Global (BOOM) currently own?
When can DMC Global (BOOM) exercise its call option for the remaining Arcadia stake?
