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Dynamic Materials Announces Sale of Clad Metal Bonding Division The Sale Will Enable Management to Focus on Its Aerospace Supplier Consolidation Strategy
LAFAYETTE, Colo., June 23 /PRNewswire/ -- Dynamic Materials Corporation, (Nasdaq: BOOM - news), 'DMC', today announced that it has reached an agreement to sell certain assets relating to its Clad Metal Bonding Division (''Bonding Division'') to AMETEK, Inc. (NYSE: AME - news), for approximately $17 million. The closing of the transaction is expected to occur in the latter part of 1999, pending the satisfaction of certain conditions. The sale is in accordance with DMC's recent focus on consolidating suppliers in the aerospace manufacturing industry and will enable DMC to continue acquiring complementary businesses.
I just spoke to Mr. M. Jarman, VP of Corp. Develpment. They only sold clad bonding division. The 17 mil. will be used to retire the recent debt. The account receivable and the CO property will make positive ~2 million net after all of these is done. BOOM will be debt free again.
They will focus on aerospace industry which is completely different from the old boom... boom business. And, future acquisition of other aerospace business is in the plan. This business will be more stable and profit margin will be better. I think this is a positive move toward higher level of technologies. Furthermore, I believe BOOM is more sellable as a focused business. It is an very attractive take over target at this share price which is near book value. I am very happy to see this change. Clad bonding was not a money maker in the passed year. It is time to move on. Hope the best.
Obviously there hasn't been a lot of excitement over BOOM in recent times. No posts since 2000!
Last week Value Line showed BOOM up over 100% in the latest 13 week period putting it at the top of the "Best Performers, Latest 13 Weeks" list. The March report shows the 3-5 year price appreciation potential to be $45 to $65 and the price/share is currently almost $70. So, I guess that means it's not going anywhere for the next 3-5 years.