CompoSecure, Inc. (CMPO), a metal payment cards, security, and authentication solutions provider, announced on Monday announced a combination with Husky Technologies Ltd., a maker of engineered equipment, for enterprise value of $5 billion. The combination will be valued at approximately $7.4 billion.
This acquisition is being funded through a private placement of around $2 billion and an equity rollover of approximately $1 billion from Platinum Equity.
The transaction, to be closed in the first quarter of 2026, is expected to be 20% accretive to adjusted earnings per share of the acquirer in the first full year of the post-close.
Dave Cote, Executive Chairman of CompoSecure, said: "We are delighted to announce the business combination with Husky…It holds a great position in a good industry, significant technology differentiation, organic and inorganic growth possibilities, and margin expansion potential."
Post transaction, Husky will function as a standalone business alongside CompoSecure under its current management team.
Citing strong demand and operating improvement, CompoSecure has revised up its full-year guidance.
For the full year, the company now expects adjusted EBITDA of approximately $165 million to $170 million, compared with the earlier guidance of $158 million.
CompoSecure now anticipates adjusted sales of approximately $463 million, higher than the prior guidance of $455 million. On average, six analysts polled forecast the company to register revenue of $454.96 million for the year.
Further, for fiscal 2026, the metal payment cards maker projects adjusted sales of around $510 million, up 10% year-over-year, and adjusted EBITDA of approximately $190 million, up 12% to 15% year-over-year.
The company noted that this guidance does not include any impact from the announced acquisition of Husky.
CMPO was up by 3.17% at $20.50 in the pre-market trade on the New York Stock Exchange.
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