Daily Camera (Boulder)

DMC considers sale of two business units

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.”

This article was first published by Bizwest, an independen­t news organizati­on, and is published under a license agreement. © 2024 Bizwest Media LLC.