Cadre Holdings (a global leader in the manufacturing and distribution of safety and survivability equipment) announced it has entered into a definitive agreement to acquire Alpha Safety Intermediate, LLC (the operating parent of Alpha Safety, a leading nuclear safety solutions company) for $106.5 million excluding working capital and certain other adjustments upon closing.
Launched in 1986, Alpha Safety is a global provider of highly engineered, technical products and services focused on radiation protection and safety in mission-critical operating environments. It offers a diversified suite of capabilities, including ventilation and containment, engineered containers, field services and maintenance, advanced transportation containers, specialty filters and radiometric instrumentation, etc.
Alpha Safety has 40+ years of entrenched relationships with key Environmental Safety, National Security, and Nuclear Energy customers, who rely upon the company’s proprietary products and services to protect critical operational personnel and the environment. And with 29 patents, strict regulation and compliance protocols, and significant IP moats, Alpha Safety maintains a protected market position due to the technical nature of its products. The business is expected to generate about $44 million in revenues for the December 31, 2023 calendar year.
The deal is anticipated to close in the first quarter of 2024, subject to the satisfaction of customary closing conditions. It is expected to be funded through available cash on the company’s balance sheet and an increase in term debt under its existing credit facility. Houlihan Lokey served as the exclusive financial advisor to Alpha Safety.
KEY QUOTES:
“Alpha Safety is an ideal Cadre business. It is a leading manufacturer of engineered technical products supporting mission-critical initiatives with highly-visible, recurring revenue and compelling growth opportunities with entrenched customers. At the center of a global effort to ensure safe nuclear operations and hazardous waste handling, Alpha Safety has a long history of strong demand from the Departments of Energy and Defense, customers who prioritize performance, reliability, quality control and technical expertise. The business maintains leading positions across all its key product lines.”
“Our agreement to acquire Alpha Safety is an important next step in diversifying Cadre’s platform and we are pleased to deliver on an objective we set at the time of our IPO. Entering an attractive new vertical with a large and growing total addressable market, adjacent to our core safety focus, was a strategic imperative, and we are pleased to capitalize on this opportunity. Based on complex and evolving industry needs and macro tailwinds, nuclear safety presents an opportunity for consistent organic growth and the ability to augment that growth through selected acquisitions. We look forward to partnering with the Alpha Safety team to execute our growth plan and are confident that our operating model will help to achieve exceptional results as we integrate the business with Cadre.”
- Warren B. Kanders, Chairman and CEO of Cadre
