BROOMFIELD — Broomfield-based DMC Global Inc. (Nasdaq: BOOM) is considering selling off two of its three business units: DynaEnergetics, the company’s energy-industry services division; and NobelClad, DMC’s industrial infrastructure and transportation division.
DMC’s board of directors, in collaboration with outside financial consultants, “will consider various strategic, business, and financial alternatives for DMC’s DynaEnergetics and NobelClad businesses,” the company said. “These could include, among other things, a sale, a merger or other business combination of a portion of DMC’s business-unit assets, and/or a strategic investment.”
If DynaEnergetics and NobelClad are offloaded, DMC’s remaining business unit would be Arcadia, a supplier of architectural building products.
“Arcadia Products is a core division of DMC, and we are taking a very focused approach toward maximizing its differentiated business model and capitalizing on growth opportunities within its large addressable markets,” DMC board chairman David Aldous said in a news release. “Both DynaEnergetics and NobelClad are valuable, industry-leading businesses with strong margin profiles. However, the board and management team are aligned with the view expressed by many DMC shareholders that the company should seek to simplify its portfolio to drive improved shareholder value. During the review process, the board and management team will continue to execute DMC’s strategy and will remain very focused on running our businesses.”
The potential pivot away from two of its business units comes as Michael Kuta has settled into his role as DMC president and CEO. Kuta, who has been serving as interim CEO after the sudden departure of the company’s former CEO about a year ago, was elevated to the permanent lead role in August 2023.
“One year ago, we began evaluating and developing new operating strategies for our business units,” Aldous said in the release. “Since Michael Kuta’s appointment as CEO less than six months ago, we have been executing those strategies, and now are focused on opportunities to maximize the value of our portfolio with the help of our financial adviser.”