Cadre to purchase TYR Tactical for $175 million
Acquisition Announcement: Cadre Holdings has entered into a definitive agreement to acquire TYR Tactical, a manufacturer of tactical gear, for a total consideration of $175 million.
Financial Impact: The acquisition is expected to be immediately accretive to earnings and adjusted EBITDA margins, with TYR Tactical generating approximately $92.6 million in revenue for the year ending December 31, 2024.
Payment Structure: The deal includes $150 million in cash at closing, $25 million in Cadre common stock, and potential additional earn-out consideration of up to $25 million based on future revenue targets.
Transaction Timeline: The acquisition is anticipated to close in the first half of 2026, pending customary closing conditions, and will be financed through Cadre's available cash and senior credit facility borrowings.
Trade with 70% Backtested Accuracy
Analyst Views on CDRE
About CDRE
About the author
Cadre Holdings (CDRE) Increases Quarterly Dividend by 5.3% to $0.10 per Share
- Dividend Increase: Cadre Holdings raised its quarterly dividend from $0.095 to $0.10 per share, marking a 5.3% increase that reflects the company's ongoing improvement in cash flow and profitability, which is expected to boost investor confidence.
- Dividend Payment Schedule: The new dividend will be payable on February 13, with a record date of January 30 and an ex-dividend date also on January 30, ensuring that existing shareholders receive timely returns, thereby strengthening the shareholder base.
- Sales Target: Cadre Holdings has set a sales target of $624 million to $630 million for 2025, indicating the company's optimistic outlook for future performance while actively advancing the acquisition of TYR Tactical to achieve this goal.
- Contract Win: A subsidiary of Cadre Holdings secured a $50 million contract with the Department of Defense, which not only provides a significant revenue stream but also enhances the company's market position in the defense sector.
Cadre Holdings Subsidiary Secures $50 Million Contract with the Department of Defense
Contract Award: Cadre Holdings' subsidiary, Med-Eng, has secured a 5-year contract worth up to $50 million from the U.S. Department of War to provide a Blast Exposure Monitoring (BEMO) system aimed at enhancing warfighter safety during training operations.
Technological Innovation: The BEMO system will utilize advanced sensor hardware and software to monitor and record blast overpressure exposures, contributing to the DoW's Brain Health program and enabling real-time updates for military personnel.
Future Deliveries: The first deliveries under this contract are expected to begin in 2026, following a competitive development program focused on improving identification methods for blast overpressure exposures in combat and training environments.
Company Background: Cadre Holdings, based in Jacksonville, Florida, specializes in safety equipment for various sectors, including law enforcement and military, with a commitment to innovation and user safety through its products.
