Perimeter Solutions (PRM) M&A Announcement summary

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.