Dynamic Materials Completes Acquisition of Austin Explosives
June 07 2010 - 8:00AM
Marketwired
Dynamic Materials Corporation (DMC) (NASDAQ: BOOM), the world's
leading provider of explosion-welded clad metal plates and a
growing provider of specialized oilfield products to the
international oil and gas industry, today reported it has completed
its previously announced acquisition of Austin Explosives Company.
DMC paid approximately $3.7 million in cash and issued 222,445
shares of DMC common stock in a transaction that was structured as
an asset purchase.
Texas-based Austin Explosives, which employs a staff of
approximately 25, previously served as the exclusive U.S.
distributor for DMC's Oilfield Products segment. Austin Explosives
recorded 2009 sales of approximately $10.7 million.
DMC also has purchased the outstanding interest in two Russian
joint ventures that were previously majority-owned by the Company's
Oilfield Products business. DMC paid a combined US$2.0 million for
the respective 45% and 36% outstanding stakes in the Siberia- and
Moscow-based businesses, which collectively perform both
manufacturing and distribution services. The combined businesses
recorded total sales of approximately US$6.5 million during fiscal
2009.
"These transactions come on the heels of our recent acquisition
of Alberta-based LRI Oil Tools, and together they illustrate our
commitment to the expansion of our Oilfield Products business,"
said Yvon Cariou, DMC's president and CEO. "Our growing
international network of manufacturing and distribution facilities
provides us with an important competitive advantage, and positions
our Oilfield Products segment to capitalize on what we believe will
be increasing long-term demand from the oil and gas industry."
About Dynamic Materials Corporation Based
in Boulder, Colorado, Dynamic Materials Corporation is a leading
international metalworking company. Its products, which are
typically used in industrial capital projects, include
explosion-welded clad metal plates and other metal fabrications for
use in a variety of industries, including oil and gas,
petrochemicals, alternative energy, hydrometallurgy, aluminum
production, shipbuilding, power generation, industrial
refrigeration and similar industries. The Company operates three
business segments: Explosive Metalworking, which uses proprietary
explosive processes to fuse different metals and alloys; Oilfield
Products, which manufactures, markets and sells specialized
explosive components and systems used to perforate oil and gas
wells; and AMK Welding, which utilizes various technologies to weld
components for use in power-generation turbines, as well as
commercial and military jet engines. For more information, visit
the Company's websites at http://www.dynamicmaterials.com and http://www.dynaenergetics.de.
Safe Harbor Language Except for the
historical information contained herein, this news release contains
forward-looking statements, including our long-range strategy of
growing the market share, distribution capabilities and product
offerings of our Oilfield Products business, all of which involve
risks and uncertainties. These risks and uncertainties include, but
are not limited to, our ability to obtain new contracts at
attractive prices; the size and timing of customer orders and
shipments; fluctuations in customer demand; fluctuations in foreign
currencies, changes to customer orders; the cyclicality of our
business; the cyclicality of the oil and gas industry; competitive
factors; the timely completion of contracts; the timing and size of
expenditures; the timely receipt of government approvals and
permits; the timing and price of raw material; the adequacy of
local labor supplies at our facilities; current or future limits on
manufacturing capacity at our various operations; the availability
and cost of funds; and general economic conditions, both domestic
and foreign, impacting our business and the business of the
end-market users we serve; as well as the other risks detailed from
time to time in the Company's SEC reports, including the report on
Form 10-K for the year ended December 31, 2009.
CONTACT: Pfeiffer High Investor Relations, Inc. Geoff High
303-393-7044
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