JACKSONVILLE, Fla. - Cadre Holdings, Inc. (NYSE: CDRE), known for its safety and survivability equipment for first responders, has announced the definitive agreement to acquire Alpha Safety Intermediate, LLC for $106.5 million. The transaction is expected to close in the first quarter of 2024, subject to customary closing conditions.
Alpha Safety, established in 1986, specializes in radiation protection and safety in critical nuclear environments. The company's product offerings include ventilation and containment systems, engineered containers, and radiometric instruments. Alpha Safety holds 29 patents, which bolsters its market position in a highly technical and regulated industry. The company is projected to generate approximately $44 million in revenue for the calendar year ending December 31, 2023.
Warren B. Kanders, Chairman and CEO of Cadre, highlighted the strategic fit of Alpha Safety within Cadre's portfolio, emphasizing the company's role in nuclear operations and hazardous waste handling. Kanders noted that Alpha Safety's long-standing customer relationships with the Departments of Energy and Defense are a testament to its commitment to performance and reliability.
The acquisition is aligned with Cadre's strategy to diversify and expand into new markets with growing total addressable markets. Cadre anticipates that the addition of Alpha Safety will support consistent organic growth and offer opportunities for further acquisitions in the nuclear safety sector.
Funding for the acquisition will come from Cadre's available cash and an increase in term debt under its existing credit facility. Houlihan Lokey (NYSE:HLI) acted as the exclusive financial advisor to Alpha Safety in this deal.
Cadre will host a conference call today to discuss details of the transaction with interested parties.
This news article is based on a press release statement from Cadre Holdings, Inc.
InvestingPro Insights
As Cadre Holdings, Inc. (NYSE: CDRE) gears up to enhance its market position through the strategic acquisition of Alpha Safety, investors are closely monitoring the financial health and stock performance of the company. According to InvestingPro, Cadre is trading at a high earnings multiple with a P/E Ratio (Adjusted) of 34.63 as of the last twelve months ending Q3 2023, reflecting a market expectation of future growth.
The company's commitment to growth is also underscored by an impressive 10.02% revenue growth over the same period, signaling a positive trajectory as it prepares to integrate Alpha Safety into its operations. Additionally, Cadre's liquid assets surpassing short-term obligations, as indicated by an InvestingPro Tip, suggests a solid financial footing for handling the acquisition costs and any associated financial adjustments.
Investors might also take comfort in knowing that Cadre operates with a moderate level of debt, which can be a stabilizing factor when absorbing new assets and liabilities from acquired entities. Moreover, with analysts predicting profitability for the company this year, the acquisition could be timely for Cadre's financial expansion.
For those looking to dive deeper into Cadre's financials and stock performance, there are 9 additional InvestingPro Tips available, which can be accessed with a subscription. To benefit from these insights and more, use coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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