DMC Global Rejects Non-Binding Proposal from Steel Connect

Steel Connect proposal undervalues DMC and denies stockholders participation in the Company’s emerging value creation opportunity

Fourth quarter sales and adjusted EBITDA expected to exceed high end of guidance range and demonstrate stabilization of the Company

BROOMFIELD, Colo., Feb. 12, 2025 (GLOBE NEWSWIRE) -- DMC Global Inc. (Nasdaq: BOOM) (“DMC” or the “Company”) today rejected a non-binding proposal from Steel Connect to acquire all of the outstanding shares of common stock of the Company, not already owned by Steel Connect, for $10.18 per share in cash (the “Proposal”).

DMC’s board of directors (the “Board”) considered the Proposal in consultation with its legal and financial advisors and in accordance with its fiduciary duties. After considerable review and deliberation, the Board determined the Proposal undervalues DMC’s business and its potential to drive future risk-adjusted value for all stockholders.

The reasons for the Board’s rejection of the non-binding Proposal include the following:

1. The Steel Connect Proposal fails to compensate stockholders for the turnaround at Arcadia and its long-term value creation potential. DMC recently recruited back Arcadia’s former president, Jim Schladen, to lead the business. With Mr. Schladen’s return, Arcadia has refocused on its core commercial operations while stabilizing and developing an improvement plan for its high-end residential products. As a regional architectural building products leader based in the Los Angeles metro area, Arcadia is uniquely positioned to participate in the long-term reconstruction of many neighborhoods destroyed by the recent wildfires in Southern California.
   
   
2. The Steel Connect Proposal fails to compensate stockholders for any cyclical improvement at DynaEnergetics and proactive steps taken during 2024 to strengthen the business. DynaEnergetics, the world’s leading supplier of factory-assembled well-perforating systems, is subject to cyclical downturns in the energy industry, which can temporarily overshadow otherwise strong operating fundamentals. Over the past several months, DynaEnergetics has made significant progress automating its North American manufacturing center, with cost benefits that will be largely realized in the first half of 2025. DynaEnergetics also has completed a substantial value engineering initiative for its flagship DynaStage system. These improvements will be particularly valuable in North America’s unconventional oil and gas industry, which favors technology leaders and is expected to benefit from an improved economic setting and more energy-friendly regulatory environment.