DMC Global Inc. (Nasdaq: BOOM) has reached an agreement with its Arcadia Products LLC joint venture partners, the Munera family, which establishes Sept. 6, 2026, as the earliest date DMC can be required to purchase the remaining 40% of Arcadia under the put option in Arcadia’s operating agreement.
Broomfield-based DMC acquired a 60% controlling interest in Arcadia on Dec. 23, 2021. The put option was originally set to be exercisable on Dec. 23, 2024. DMC retains the ability to acquire the remaining 40% of Arcadia through a call option that becomes exercisable on Dec. 23, 2024.
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.”
He added, “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.”
DMC Global is an owner and operator of asset-light manufacturing businesses that provide highly engineered products and differentiated solutions. Arcadia Products LLC, based in Vernon, Calif., is supplier of architectural building products.