Broomfield-based DMC Global (NASDAQ: BOOM) announced that its board of directors responded to a press release from Steel Connect Inc. regarding its unsolicited proposals to acquire DMC, made on May 31, 2024, and again on Sept. 17, for the company, or alternatively, its DynaEnergetics and NobelClad businesses.
The board stated that since the initial offer, it has repeatedly invited Steel Connect to participate in the review of strategic alternatives, subject to standard terms and conditions. However, Steel Connect has rejected DMC’s requests to enter into a customary non-disclosure agreement and a limited, 30-day standstill agreement. These agreements are intended to protect the company’s confidential information and maintain the integrity of the strategic alternatives process.
Additionally, Steel Connect has requested details of all offers and indications of interest from other participants, which DMC views as an unacceptable interference with the board’s management of the strategic review process. The board expressed a willingness to exchange information and engage with Steel Connect, provided that an agreement with customary provisions to protect the rights of all stockholders is in place.
DMC emphasized that there is no assurance this process will yield any transaction or alternative, nor is there a guarantee regarding the outcome or timing. The company does not have a timetable for the completion of this process and does not intend to comment further unless additional disclosure is deemed necessary or appropriate.
BofA Securities is serving as DMC’s financial adviser, while Womble Bond Dickinson (US) LLP and Richards, Layton & Finger, P.A. are acting as legal advisers. Sodali & Co. is the strategic stockholder adviser, and Gagnier Communications LLC is the strategic communications adviser for DMC.
DMC Global operates asset-light manufacturing businesses that provide highly engineered products and solutions. Its operations include Arcadia, a supplier of architectural building products; DynaEnergetics, which serves the energy industry; and NobelClad, which supports industrial infrastructure and transportation sectors.