Cadre Holdings, Inc. (NYSE:CDRE), a global leader in public safety and security solutions, has announced the acquisition of Alpha Safety Intermediate, LLC, a company specializing in nuclear waste management and radiation safety products and services. The deal, which was finalized on Thursday, involves a cash payment of $106.5 million subject to customary adjustments.
Alpha Safety Intermediate, LLC, now a unit under Cadre Holdings, provides critical services for both commercial and governmental sectors, including the design and manufacturing of nuclear waste handling, transportation, and storage products, as well as radioactive material identification and protection systems. The acquisition also encompasses onsite support services.
In the agreement, Cadre Holdings has guaranteed the obligations of its subsidiary, Safariland, LLC, the designated purchaser. At closing, a portion of the purchase price, $750,000, will be held in escrow to address any necessary adjustments based on the final working capital figures.
The Purchase Agreement includes standard representations, warranties, covenants, and indemnities by both parties. Notably, Alpha Safety Intermediate, LLC has committed to continue operating in the ordinary course, maintaining consistent practices until the transaction's closing. Additionally, the company has agreed not to engage in discussions or negotiations with other potential buyers until the deal is either completed or terminated.
To mitigate risks associated with the transaction, the Purchaser has secured a representation and warranty insurance policy. This policy will cover losses due to inaccuracies or breaches of the Seller Parties' representations and warranties, with certain exclusions and limits as outlined in the Purchase Agreement.
The completion of the acquisition is contingent upon various customary closing conditions, including the absence of legal impediments, the accuracy of representations and warranties, the receipt of necessary governmental consents, the execution of an Escrow Agreement, and other standard conditions.
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