CompoSecure announces $7.4B business combination with Husky Technologies

CompoSecure (CMPO) announced a business combination with Husky Technologies in a transaction that will value the combined business at approximately $7.4B. Husky will be run as a standalone business alongside CompoSecure and will continue to operate under its current management team. Under the terms of the transaction, CompoSecure will combine with Husky for an enterprise value of approximately $5B, representing approximately 11.2x 2026E pro forma adjusted EBITDA of $445M. The combined entity will have a pro forma enterprise value of approximately $7.4B, representing approximately 11.6x 2026E pro forma net adjusted EBITDA of approximately $635M.The business combination is being funded through a private placement of approximately $2B and equity rollover of approximately $1B from Platinum Equity. Pro forma net LTM leverage is expected to be approximately 3.5x with the ability to naturally de-lever approximately 0.8x per year. The Husky subsidiary will enter into a management agreement with Resolute Holdings on substantially similar terms as the CompoSecure management agreement. The transaction is expected to close in the first quarter of 2026, subject to customary closing conditions, including regulatory approval. The transaction is expected to be 20%+ accretive to adjusted diluted earnings per share in the first full year post-closing.