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Perimeter Solutions (PRM) investor relations material
Perimeter Solutions M&A Announcement summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Deal rationale and strategic fit
Acquisition of MMT, a leader in precision machinery and consumables for minimally invasive medical device manufacturing, for $685 million in cash, aligns with a strategy to own high-quality, capital-light businesses with strong recurring and proprietary aftermarket revenue.
The deal supports a decentralized operating structure and Value Driver strategy, emphasizing customer value, compliance, and operational improvements.
MMT's deep relationships with blue-chip OEMs and history of successful tuck-in M&A are expected to drive continued organic and acquisition-led growth.
The acquisition targets expansion in the medical technology sector and aims for private-equity-like returns.
MMT will operate as a standalone business, maintaining autonomy and accountability within a decentralized structure.
Financial terms and conditions
Purchase price is $685 million in cash, funded by $500 million in new secured debt and $185 million of cash on hand, with certain tax benefits.
MMT is projected to generate $140 million in revenue and $50 million in Adjusted EBITDA in 2025.
Implied purchase price multiple is approximately 14x Adjusted EBITDA.
Pro forma leverage at closing is projected at 2.7x net debt to combined Adjusted EBITDA.
No equity issuance; company retains ample liquidity and balance sheet flexibility post-acquisition.
Synergies and expected cost savings
Value creation is expected through the Value Driver operating model, focusing on customer value, productivity, and margin improvement.
Aftermarket consumables and services, accounting for about half of revenue, provide recurring income and margin stability.
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