Dynamic Materials acquiring supplier

BOULDER – Dynamic Materials Corp. in Boulder has signed an agreement to purchase the assets of Austin Explosives Co. for $7 million.

Boulder-based Dynamics Materials (Nasdaq: BOOM) manufactures explosion-welded clad metal plates and recently increased its presence in the oilfield products industry. Dynamic Materials announced the pending acquisition in an earnings report.

Austin, Texas-based Austin Explosives is an oilfield explosives supplier founded in 1960. It is a major distributor for DynaEnergetics, a subsidiary of Dynamic Materials.

According to the report, Dynamic will pay $3.5 million cash and another $3.5 million in stock, cash or a combination of both for the Austin company. The acquisition is expected to close next quarter.

Austin Explosives recorded sales of about $10.7 million last year.

In October, Dynamic Materials acquired Alberta, Canada-based LRI Oil Tools Inc. in a cash and stock transaction. Dynamic Materials paid $650,000 in cash and approximately $172,000 worth of stock. It turned over 9,584 shares of restricted common stock.

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