InsideArbitrage Potential Deal Alert: Steel Connect (STCN) Offers to Buy DMC Global (BOOM) for $16.5 Per Share

POTENTIAL DEAL DETAILS

Steel Connect (STCN) presents a non-binding proposal to acquire all the outstanding shares of common stock of DMC Global (BOOM) at a price equal to $16.50 per share in cash.

DMC Global Inc. Investor Relations

Steel Connect Inc. Investor Relations

Update(s):

September 17, 2024: Steel Connect (STCN), which owns about 9.8% of the outstanding shares of DMC Global (BOOM), issued a public letter to DMC’s Board. Steel Connect reiterated its May 30th proposal to acquire the remaining shares of DMC at $16.50 per share in cash. Despite attempts to engage with DMC’s Board for over three months, Steel Connect claims there has been no meaningful progress, citing the Board’s refusal to agree to reasonable requests or allow the purchase of more shares. Additionally, Steel Connect criticized the lack of transparency regarding the company’s strategic alternatives and put/call right for Arcadia. As an alternative to a full acquisition, Steel Connect is also open to purchasing DMC’s DynaEnergetics and NobelClad businesses for $185 million. If the Board continues to avoid discussions, Steel Connect may explore a tender offer for the remaining shares.

September 19, 2024: DMC Global (BOOM) announced that its Board has responded to Steel Connect’s (STCN) unsolicited offers to acquire DMC, or its DynaEnergetics and NobelClad businesses, made on May 31, 2024, and September 17, 2024. The Board has offered Steel Connect multiple opportunities to participate in its review of strategic alternatives which Steel Connect has declined. The Board remains open to engaging with Steel Connect.

October 21, 2024: DMC’s (BOOM) Board announced it is no longer actively marketing DynaEnergetics and NobelClad. Since announcing strategic review processes for both businesses in January 2024, the company has reviewed and considered sales, mergers, and other strategic combinations. The Board believes that prioritizing stability and internal improvement will better serve the stockholders than selling these businesses at present.

Disclaimer: Our intent with this section of the website is to present potential deals that appear to be in the pipeline. These potential deals are ones where i) the company has indicated that it is "seeking strategic alternatives", ii) there has been an unsolicited bid for a company as mentioned in a press release by the company or iii) news about the deal has been published by a leading news organization like The Wall Street Journal, The New York Times, Bloomberg, Financial Times, The Washington Post, Reuters and The Associated Press. As best as possible we will try to avoid baseless rumors. There is a high probability that many of these potential deals may not materialize and if they do, the terms of the deal may be different from what was initially reported. Please do your own due diligence before buying or selling any securities mentioned on this website. We do not warrant the completeness or accuracy of the content or data provided.