Added News: Acquisition of Interest
• The David Cote Family is investing $372M through Resolute and Dave Cote will become the executive chairman of the board of directors of CompoSecure upon closing of the transaction.
• Resolute will become the majority shareholder of the Company and will focus on deploying operational and M&A best practices to drive long-term value creation for all shareholders.
• Under the terms, the selling shareholders will exchange the entirety of their Class B units and associated Class B shares for Class A shares, eliminating the current dual-share class structure.
• Resolute will subsequently purchase 49.3M of the corresponding Class A shares to acquire majority control of the Company.
• As a result of the transaction, The David Cote Family is expected to have voting control of approximately 60% of total shares outstanding as of the closing date.
• Resolute will become the majority shareholder of the Company and will focus on deploying operational and M&A best practices to drive long-term value creation for all shareholders.
• Under the terms, the selling shareholders will exchange the entirety of their Class B units and associated Class B shares for Class A shares, eliminating the current dual-share class structure.
• Resolute will subsequently purchase 49.3M of the corresponding Class A shares to acquire majority control of the Company.
• As a result of the transaction, The David Cote Family is expected to have voting control of approximately 60% of total shares outstanding as of the closing date.
Resolute Holdings I, LP is set to acquire a majority interest in a company, aiming to streamline its governance by removing the dual-class stock structure. This significant financial move, which hinges on regulatory approval and standard closing conditions, also involves strategic amendments to a Tax Receivable Agreement and the implementation of a new credit agreement with improved terms. The company’s restructuring is expected to affect its exchangeable notes, signaling a pivotal shift that has been publicly announced to keep stakeholders informed.
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