CLAYTON, Mo., Jan. 22, 2026 (GLOBE NEWSWIRE) -- Perimeter Solutions, Inc. (NYSE: PRM) (“Perimeter,” “Perimeter Solutions,” or the “Company”), today announced that it has completed the acquisition of Medical Manufacturing Technologies LLC (“MMT”) from Arcline Investment Management (“Arcline”) for approximately $685 million in cash, including certain tax benefits. The signing of the definitive agreement was previously announced on December 10, 2025. The Company financed the transaction with cash on hand and t ...

Company Overview - Perimeter Solutions, Inc. is a specialty chemicals company focused on fire safety and lubricant additives, operating globally with a diverse customer base [6] - The company generates revenue primarily through its Fire Safety and Oil Additives segments, supplying products and services to industrial and government clients [9] - As of the latest report, Perimeter Solutions has a market capitalization of $4.15 billion, with trailing twelve-month (TTM) revenue of $636.34 million and net income of $78.03 million [4] Financial Performance - In the third quarter, Perimeter Solutions reported a 9% year-over-year revenue increase to $315.4 million, with adjusted EBITDA also rising 9% to $186.3 million, driven by strong performance in Fire Safety products [11] - Year-to-date adjusted EBITDA is up 20%, and adjusted earnings per share (EPS) for the quarter increased to $0.82 from $0.75 a year earlier [11] Investment Activity - East Coast Asset Management reduced its stake in Perimeter Solutions by 497,847 shares, amounting to an estimated $6.40 million, as per a November 14 SEC filing [1][2] - Post-reduction, the remaining stake in Perimeter Solutions is approximately 1.6 million shares valued at $35.24 million, representing 11.04% of the fund's 13F assets and ranking as its second-largest holding [2][3] - The fund's decision to trim its position is viewed as a risk management strategy rather than a retreat, maintaining significant exposure to the company [10][12]

Core Insights - Perimeter Solutions, Inc. (PRM) has announced a $550 million offering of 6.250% senior secured notes due January 15, 2034, with an expected closing date of January 2, 2026 [1][8] Group 1: Offering Details - The notes will mature on January 15, 2034, and will bear interest at a rate of 6.250% per annum, payable semi-annually [1] - The offering is fully guaranteed on a senior secured basis by Perimeter Intermediate, LLC, and secured by first-priority interests on substantially all present and future assets of Perimeter Holdings and its guarantors [2][8] Group 2: Use of Proceeds - The net proceeds from the offering, along with cash on hand, will be used to fund the acquisition of Medical Manufacturing Technologies LLC (MMT) and to cover related fees and expenses [3][8] - If the acquisition is not completed by September 9, 2026, or if the company decides not to pursue it, Perimeter Holdings will be required to redeem the notes [3] Group 3: Strategic Implications - The acquisition of MMT is expected to enhance Perimeter's focus on businesses in secular growth markets characterized by strong free cash flow, high returns on tangible capital, and sustainable earnings power [4] - Post-transaction, the company anticipates a net leverage ratio of approximately 2.7x net debt to combined adjusted EBITDA for the last 12 months ending September 30, 2025 [4] Group 4: Market Performance - PRM shares have increased by 117.3% over the past year, contrasting with a 1% decline in the industry [6]

Industry Overview - The chemical industry is facing a demand slowdown in major markets such as consumer durables and building & construction, influenced by cautious customer spending and inventory de-stocking [1] - Lower consumer spending due to inflation in Europe and a slow recovery in China has further impacted demand, compounded by trade tariff disruptions [1][6] - Elevated input, supply chain, and logistics costs continue to pose challenges for the industry [1][7] Market Challenges - The year 2025 has been particularly tough for the chemical industry, with significant downturns in the building & construction and consumer electronics markets leading to demand destruction [3] - In North America, uncertainties in the U.S. housing market and high borrowing costs have negatively affected the residential construction sector [3] - The consumer electronics market, crucial for specialty chemicals, has seen a cooling demand due to high inflation and cautious consumer behavior [3] Sector-Specific Insights - The automotive industry, a key consumer of chemicals, has experienced mixed results; while the shift to electric vehicles has created some demand, overall vehicle production is constrained by high input costs and economic uncertainties [4] - Manufacturing activities have softened due to weaker demand and higher borrowing costs, impacting the industrial sector's demand for chemicals [5] - A slower recovery in China, a major consumer of chemicals, has further suppressed demand, particularly in the construction sector [6] Strategic Responses - Chemical companies are implementing strategic measures such as cost-cutting, improving operational efficiency, and strengthening balance sheets to navigate the challenging environment [8] - Companies are raising selling prices to counter inflation, which is expected to help sustain margins heading into 2026 [8][9] Notable Companies - Perimeter Solutions, Inc. (PRM) has shown resilience with a focus on profitable new business and productivity measures, expecting earnings growth of 7.4% for 2026, with shares up 114.7% in the past six months [14][15] - Albemarle Corporation (ALB) is well-positioned for long-term growth in the battery-grade lithium market, with expected earnings growth of 177.9% for 2026 and shares up 124.4% in the past six months [16][17] - Sociedad Quimica y Minera de Chile S.A. (SQM) benefits from being a low-cost producer in the lithium market, with expected earnings growth of 71.9% for 2026 and shares up 101.9% in the past six months [18][19]

Core Viewpoint - Perimeter Solutions, Inc. announced the pricing of a $550 million offering of 6.250% senior secured notes due January 15, 2034, to finance the acquisition of Medical Manufacturing Technologies LLC and related expenses [1][2]. Group 1: Offering Details - The offering consists of $550 million aggregate principal amount of senior secured notes with an interest rate of 6.250% per year, payable semi-annually [1]. - The notes will mature on January 15, 2034, and will be fully guaranteed on a senior secured basis by Perimeter Intermediate and certain subsidiaries [1]. - The notes will be secured by a first-priority security interest in substantially all present and future assets of Perimeter Holdings and the guarantors [1]. Group 2: Use of Proceeds - The net proceeds from the offering will be used alongside cash on hand to pay for the acquisition of Medical Manufacturing Technologies LLC and related fees and expenses [2]. Group 3: Redemption Conditions - If the acquisition of MMT is not completed by September 9, 2026, or if Perimeter Holdings decides not to pursue the acquisition, the company will be required to redeem the notes [3]. Group 4: Regulatory Information - The notes have not been registered under the Securities Act of 1933 and may only be offered to qualified institutional buyers and non-U.S. persons under specific regulations [4].

Core Viewpoint - Perimeter Solutions, SA has shown significant stock performance, with a 122.3% increase since the beginning of the year, outperforming both the Zacks Basic Materials sector and the Zacks Chemical - Specialty industry [1] Financial Performance - The company reported an EPS of $0.82 in its last earnings report, exceeding the consensus estimate of $0.68 [2] - For the current fiscal year, earnings are expected to be $1.36 per share on revenues of $639.71 million, reflecting a 22.52% increase in EPS and a 14.04% increase in revenues [3] - For the next fiscal year, projected earnings are $1.46 per share on revenues of $665 million, indicating year-over-year changes of 7.35% and 3.95%, respectively [3] Valuation Metrics - Perimeter Solutions, SA trades at 20.9 times the current fiscal year EPS estimates, which is above the peer industry average of 18.9 times [7] - On a trailing cash flow basis, the stock trades at 18.8 times compared to the peer group's average of 12.4 times, suggesting it is not in the top tier from a value perspective [7] Style Scores and Zacks Rank - The company has a Value Score of D, while its Growth and Momentum Scores are both A, resulting in a VGM Score of B [6] - Perimeter Solutions, SA holds a Zacks Rank of 1 (Strong Buy), supported by favorable earnings estimate revisions from analysts [8] - The stock aligns with the recommendation for investors to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, indicating potential for further price appreciation [9]

Core Viewpoint - Perimeter Solutions, Inc. plans to offer $550 million in senior secured notes to finance the acquisition of Medical Manufacturing Technologies LLC and related expenses [1][2]. Group 1: Offering Details - Perimeter Holdings intends to issue $550 million in senior secured notes due in 2034, guaranteed by Perimeter Intermediate and certain subsidiaries [1]. - The notes will be secured by a first-priority security interest in substantially all assets of Perimeter Holdings and the guarantors [1]. Group 2: Use of Proceeds - The net proceeds from the notes offering, along with cash on hand, will be used to pay for the acquisition of MMT and associated fees [2]. Group 3: Conditions and Obligations - If the acquisition of MMT is not completed by September 9, 2026, or if Perimeter Holdings decides not to pursue the acquisition, it will be required to redeem the notes [3]. Group 4: Credit Facility Amendments - Prior to the notes offering, Perimeter Holdings plans to amend its existing revolving credit facility to increase the principal amount to up to $200 million and extend the maturity date [4].

Core Insights - Perimeter Solutions, Inc. (PRM) has announced a definitive agreement to acquire Medical Manufacturing Technologies LLC (MMT) for approximately $685 million in an all-cash deal, expected to close by the first quarter of 2026 [1][7] - The acquisition aligns with PRM's strategy of focusing on businesses in secular growth markets, with MMT projected to generate around $140 million in revenues and $50 million in adjusted EBITDA for 2025 [2][3] Financial Details - The transaction will be funded through $500 million in new secured debt financing and $185 million in cash on hand, with an expected net leverage ratio of about 2.7x net debt to combined adjusted EBITDA for the last 12 months ending September 30, 2025 [1][3][7] - MMT has a strong history of organic and M&A driven growth, with about half of its revenues derived from aftermarket consumables [2] Market Performance - PRM's shares have increased by 124.5% over the past year, significantly outperforming the industry, which has seen an 8.5% decline [4] - PRM currently holds a Zacks Rank 1 (Strong Buy), indicating strong market confidence in the company's future performance [5]

Core Viewpoint - Perimeter Solutions has announced the acquisition of Medical Manufacturing Technologies, LLC (MMT), indicating a strategic move to enhance its capabilities in the market [2]. Group 1: Acquisition Details - The acquisition of MMT is a significant step for Perimeter Solutions, aimed at expanding its operational scope and product offerings [2]. - The company is expected to discuss the implications of this acquisition during the conference call [2]. Group 2: Financial Information - The call will reference non-GAAP financial measures, including adjusted EBITDA, with further details available in the press release and investor presentation [4].

Summary of Perimeter Solutions Conference Call on M&A Announcement Company and Industry - **Company**: Perimeter Solutions (NYSE: PRM) - **Acquisition Target**: Medical Manufacturing Technologies LLC (MMT) - **Industry**: Medical Device Manufacturing Core Points and Arguments 1. **Acquisition Details**: Perimeter Solutions is acquiring MMT for $685 million in cash, which includes certain tax benefits. MMT is a leader in precision machinery for minimally invasive medical devices, expected to generate approximately $140 million in revenue and $50 million in EBITDA in 2025 [4][12][10]. 2. **Funding Structure**: The acquisition will be funded through $500 million of new senior secured debt financing and approximately $185 million of cash on hand. Post-acquisition, total debt is expected to be around $1.2 billion, with net debt just over $1 billion [4][12][13]. 3. **Operational Fit**: MMT aligns with Perimeter's operational pillars, focusing on high-quality industrial businesses, value driver operating strategy, and a decentralized structure. MMT's strong margins and growth potential are highlighted [5][6][8]. 4. **Market Trends**: The growth of MMT is driven by increasing adoption of minimally invasive procedures, device complexity, and machinery outsourcing. The installed base of MMT has grown at a CAGR of approximately 5% since 2016 [11][10]. 5. **Aftermarket Revenue**: Approximately 50% of MMT's revenue comes from aftermarket consumables and services, which are critical for customer compliance and quality management systems [10][11]. 6. **Regulatory Compliance**: MMT's products are specified in regulatory filings with the FDA, creating a competitive moat around the business [17][10]. 7. **Future Growth Opportunities**: There is potential for further acquisitions to broaden MMT's product suite, with a focus on tuck-in M&A to enhance customer offerings [26][28]. Additional Important Content 1. **Financial Metrics**: The acquisition price implies a purchase price multiple of approximately 14 times Adjusted EBITDA, which is considered attractive given the expected growth [12]. 2. **Capital Intensity**: MMT is expected to fit into Perimeter's relatively low capital intensity model, requiring only a few million dollars of CapEx against the projected $50 million of EBITDA [16]. 3. **Customer Relationships**: MMT has long-standing relationships with top customers, averaging 15 years, which enhances customer loyalty and revenue stability [10]. 4. **Decentralized Management**: MMT will operate as a standalone business within Perimeter's decentralized structure, allowing for operational autonomy and accountability [7][5]. 5. **Market Stability**: The end market for MMT's products is relatively steady, driven by the number of medical procedures, which supports long-term growth [24]. This summary encapsulates the key points discussed during the conference call regarding Perimeter Solutions' acquisition of MMT, highlighting the strategic fit, financial implications, and market dynamics.