DMC Global stock up after latest Steel Connect acquisition offer

BROOMFIELD — DMC Global Inc.’s (Nasdaq: BOOM) stock price was up more than 8% late in the trading day Monday after the Broomfield-based oilfield-services, construction-products and infrastructure operator confirmed that its leaders were considering a new acquisition offer from supply-chain management firm Steel Connect Inc.

DMC told investors Monday morning that it has “acknowledged receipt of 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 company’s stock was trading at $8.58 as of just after 1 p.m.

Steel Connect, which already owns 9.9% of the outstanding shares of DMC Global, has made several unsolicited — and thus far unsuccessful — bids to buy DMC, which has struggled with leadership continuity and has seen its stock price lose more than 50% of its value over the last 12 months, after DMC began exploring its options for selling off DynaEnergetics, the company’s energy-industry services division, and NobelClad, DMC’s industrial infrastructure and transportation division. DMC’s other business unit is Arcadia, a supplier of architectural building products.

“DMC’s board of directors will consider the proposal in consultation with its legal and financial advisers and in accordance with its fiduciary duties. In the meantime, stockholders need not take any action,” the company said Monday. “The proposal is subject to further due diligence by Steel Connect. There can be no assurance that any definitive agreement will be executed, or that the proposal or any other transaction will be approved or consummated. The company will have no further comment on the proposal until the board has completed its review.”

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