DMC Global Responds to Steel Connect
DMC Global (Nasdaq: BOOM) has issued a response to Steel Connect's letter to stockholders. The company confirms that its board regularly engages with interested third parties, including Steel Connect, providing them with comparable access to company information. Following the signing of a non-disclosure agreement in October 2024, DMC began sharing information with Steel Connect and has been working to facilitate their submission of an actionable acquisition proposal, including funding verification.
The Board emphasizes its commitment to evaluating all alternatives, including its standalone plan, to maximize stockholder value. The company has retained BofA Securities as financial advisor, Womble Bond Dickinson and Richards, Layton & Finger as legal advisors, Sodali & Co as stockholder advisor, and Gagnier Communications as communications advisor.
DMC Global (Nasdaq: BOOM) ha risposto alla lettera agli azionisti di Steel Connect. L'azienda conferma che il suo consiglio si confronta regolarmente con parti terze interessate, inclusa Steel Connect, fornendo loro un accesso equivalente alle informazioni aziendali. Dopo la firma di un accordo di riservatezza nell'ottobre 2024, DMC ha iniziato a condividere informazioni con Steel Connect e sta lavorando per agevolare la loro presentazione di una proposta d'acquisizione attuabile, compresa la verifica dei finanziamenti.
Il Consiglio sottolinea il suo impegno a valutare tutte le alternative, incluso il proprio piano autonomo, per massimizzare il valore per gli azionisti. L'azienda ha affidato a BofA Securities il ruolo di consulente finanziario, a Womble Bond Dickinson e Richards, Layton & Finger quello di consulenti legali, a Sodali & Co quello di consulenti per gli azionisti, e a Gagnier Communications quello di consulenti per la comunicazione.
DMC Global (Nasdaq: BOOM) ha emitido una respuesta a la carta de Steel Connect dirigida a los accionistas. La empresa confirma que su junta se comunica regularmente con terceros interesados, incluyendo Steel Connect, dándoles acceso comparable a la información de la empresa. Tras la firma de un acuerdo de confidencialidad en octubre de 2024, DMC comenzó a compartir información con Steel Connect y ha estado trabajando para facilitar su presentación de una propuesta de adquisición viable, incluyendo la verificación de financiamiento.
La Junta enfatiza su compromiso de evaluar todas las alternativas, incluyendo su plan independiente, para maximizar el valor para los accionistas. La empresa ha contratado a BofA Securities como asesor financiero, a Womble Bond Dickinson y Richards, Layton & Finger como asesores legales, a Sodali & Co como asesor de accionistas, y a Gagnier Communications como asesor de comunicación.
DMC 글로벌(Nasdaq: BOOM)은 Steel Connect의 주주 서한에 대한 답변을 발표했습니다. 회사는 자사의 이사회가 Steel Connect를 포함한 이해관계자들과 정기적으로 소통하며, 그들에게 회사 정보에 대한 동등한 접근을 제공하고 있음을 확인합니다. 2024년 10월 비밀유지 계약을 체결한 후 DMC는 Steel Connect와 정보를 공유하기 시작했으며, 그들의 실행 가능한 인수 제안 제출을 촉진하기 위해 작업해왔습니다. 자금 조달 검증도 포함됩니다.
이사회는 주주 가치를 극대화하기 위해独自 계획을 포함한 모든 대안을 평가하겠다는 의지를 강조합니다. 회사는 BofA Securities를 재무 자문으로, Womble Bond Dickinson과 Richards, Layton & Finger를 법률 자문으로, Sodali & Co를 주주 자문으로, 그리고 Gagnier Communications를 커뮤니케이션 자문으로 두었습니다.
DMC Global (Nasdaq: BOOM) a répondu à la lettre de Steel Connect adressée aux actionnaires. L'entreprise confirme que son conseil d'administration engage régulièrement le dialogue avec des tiers intéressés, y compris Steel Connect, leur fournissant un accès comparable aux informations de l'entreprise. Après la signature d'un accord de confidentialité en octobre 2024, DMC a commencé à partager des informations avec Steel Connect et travaille à faciliter leur soumission d'une proposition d'acquisition réalisable, y compris la vérification du financement.
Le Conseil souligne son engagement à évaluer toutes les alternatives, y compris son plan autonome, afin de maximiser la valeur pour les actionnaires. L'entreprise a retenu BofA Securities comme conseiller financier, Womble Bond Dickinson et Richards, Layton & Finger comme conseillers juridiques, Sodali & Co comme conseiller des actionnaires, et Gagnier Communications comme conseiller en communication.
DMC Global (Nasdaq: BOOM) hat auf den Brief von Steel Connect an die Aktionäre geantwortet. Das Unternehmen bestätigt, dass sein Vorstand regelmäßig mit interessierten Dritten, einschließlich Steel Connect, kommuniziert und ihnen vergleichbaren Zugang zu Unternehmensinformationen gewährt. Nach der Unterzeichnung einer Vertraulichkeitsvereinbarung im Oktober 2024 begann DMC, Informationen mit Steel Connect auszutauschen und arbeitet daran, deren Einreichung eines umsetzbaren Übernahmeangebots, einschließlich der Finanzierungsoffenlegung, zu erleichtern.
Der Vorstand betont sein Engagement, alle Alternativen zu prüfen, einschließlich seines eigenständigen Plans, um den Wert für die Aktionäre zu maximieren. Das Unternehmen hat BofA Securities als Finanzberater, Womble Bond Dickinson und Richards, Layton & Finger als Rechtsberater, Sodali & Co als Aktionärsberater und Gagnier Communications als Kommunikationsberater beauftragt.
- Company is actively engaging with potential acquirers, showing openness to value-creating transactions
- Professional advisory team assembled including BofA Securities indicates serious consideration of strategic alternatives
- No concrete acquisition proposal received from Steel Connect despite months of engagement
- Uncertainty around potential transaction outcome may impact stock volatility
Insights
This corporate response reveals several critical insights for investors following DMC Global's potential M&A situation. The company's measured public response to Steel Connect suggests a complex negotiation process that has now entered a more confrontational phase, evidenced by Steel Connect's decision to go public with their concerns.
The retention of BofA Securities as financial advisor, alongside multiple legal and communications firms, indicates the Board is preparing for various scenarios, including a possible hostile takeover attempt. The timing of Steel Connect's engagement - beginning in August 2024 with an NDA signed in October - provides a important timeline that suggests negotiations may have reached a critical juncture.
Several key elements warrant attention:
- The emphasis on "actionable proposal" and "ability to fund" suggests potential concerns about Steel Connect's financing capabilities
- The reference to "essentially the same information" implies careful information management while maintaining equal treatment of potential bidders
- The mention of a "standalone plan" serves as both a negotiating tactic and a signal that the Board maintains alternative options
For investors, this situation presents both opportunities and risks. The public nature of these discussions could attract additional potential buyers, potentially creating a competitive bidding environment. However, the Board's measured response and emphasis on proper process suggests they're prioritizing thorough evaluation over speed, which could extend the timeline for any potential transaction.
BROOMFIELD, Colo., Jan. 27, 2025 (GLOBE NEWSWIRE) -- DMC Global Inc. (Nasdaq: BOOM) (“DMC” or the “Company”) today responded to Steel Connect, Inc.’s (“Steel Connect”) letter to DMC stockholders.
DMC’s board of directors (the “Board”), consistent with its fiduciary duties, regularly engages with third parties, including Steel Connect, that express interest in DMC and its businesses.
Steel Connect has been afforded access to essentially the same information on substantially the same basis as other third parties that have engaged with the Company. After commencing discussions regarding a non-disclosure agreement in August 2024, and upon signing an agreement in October 2024, the Company immediately began providing information to Steel Connect. DMC and its advisors have continued to work diligently and in good faith with Steel Connect to enable it to finally advance and timely submit an actionable proposal to acquire the Company, including providing evidence of its ability to fund.
DMC stockholders can rest assured that the Board is committed to evaluating the Company’s alternatives, including the execution of its standalone plan, and pursuing the path that it believes to be in the best interests of all stockholders.
Advisors
BofA Securities is acting as financial advisor to DMC. Womble Bond Dickinson (US) LLP and Richards, Layton & Finger, P.A. are acting as DMC’s legal advisors, Sodali & Co is acting as its strategic stockholder advisor, and Gagnier Communications LLC is its strategic communications advisor.
About DMC Global
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:
Investors:
Geoff High
Vice President of Investor Relations
303-604-3924
Media:
Riyaz Lalani or Dan Gagnier
Gagnier Communications
416-305-1459
DMCGLOBAL@GAGNIERFC.COM
FAQ
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