About DMC Global

DMC Global Inc. engages in the asset-light manufacturing businesses that provide differentiated products and engineered solutions to niche segments of the construction, energy, industrial processing, and transportation markets. The company owns and operates Arcadia, DynaEnergetics (DynaEnergetics GmbH and Co. KG) and NobelClad businesses. Arcadia Products supplies architectural building products, including exterior and interior framing systems, windows, curtain walls, storefronts, doors, and interior partitions to the commercial construction market; it also supplies customized windows and doors to the ultra-high-end residential construction market. DynaEnergetics designs, manufactures and sells highly engineered products utilized by the global oil and gas industry principally for the perforation of oil and gas wells. NobelClad is a leader in the production of explosion-welded clad metal plates for use in the construction of corrosion resistant industrial processing equipment, as well as specialized transition joints for use in construction of commuter rail cars, ships, and liquified natural gas (LNG) processing equipment. Arcadia Products uses a network of service centers and distributors throughout the United States to sell its products, while DynaEnergetics and NobelClad operate globally through an international network of manufacturing, distribution and sales facilities. Strategy The company's strategy is to maximize the value of it by capitalizing on the unique strengths of each of its three businesses. Arcadia Products, which has established a differentiated business model within the commercial and residential building products industry, serves a large addressable market and is seeking to grow its position in its targeted U.S. markets. DynaEnergetics and NobelClad each have established leadership positions in their segments of the energy and industrial equipment industries, and both have opportunities for additional growth. Business Segments Arcadia Products Arcadia Products provides architectural building products to the U.S. construction industry through three divisions: Arcadia, which serves the commercial exteriors market; Wilson Partitions, which serves the commercial interiors market; and Arcadia Custom, which serves the high-end residential market. Arcadia Arcadia designs, engineers, fabricates and finishes aluminum framing systems, windows, curtain walls, storefronts and entrance systems for the commercial exteriors market. It operates an integrated hub and satellite model in which light manufacturing, anodizing and painting of aluminum components are performed in Vernon, California, and the resulting products are shipped to a network of service centers located in growing markets throughout the western and southwestern United States. Products are designed to address regional needs and preferences, and each satellite seeks to offer superior product availability, short lead times, product customization, and design and engineering support. Arcadia serves a loyal customer base consisting primarily of local and regional glazing contractors, subcontractors, commercial architects and designers. In 2023, Arcadia accounted for approximately 69% of the net sales of Arcadia Products. Wilson Partitions Wilson Partitions serves the commercial interior framing and partitions markets across the U.S., providing framing systems, aluminum doors, sliding systems and glazing systems. Wilson Partitions is supported by centralized manufacturing facilities in California, as well as support facilities in Connecticut and Texas. Its products address both new construction and repairs and remodels; and product capabilities include noise control, fire rating, built-to-order custom finishes, and other functional and aesthetic features. In 2023, Wilson Partitions accounted for approximately 10% of the net sales of Arcadia Products. Arcadia Custom Arcadia Custom serves the ultra-high-end residential real estate market throughout the United States, and is supported by manufacturing facilities in California, Arizona and Connecticut. It provides a broad offering of custom, fully fabricated aluminum, steel and wood windows and doors to luxury homes and mixed-use markets. Arcadia Custom works closely with architects, owners, contractors and installers to provide support throughout the planning, design and installation phases of a residential construction process. In 2023, Arcadia Custom accounted for approximately 21% of the net sales of Arcadia Products. Environmental Sustainability Arcadia Products' operations have an ongoing focus on environmental sustainability, including hazardous waste recycling and initiatives aimed at reducing waste. All of Arcadia's commercial building products and many of the company's residential product offerings are made from aluminum, including recycled aluminum content. A significant portion of Arcadia Custom's residential projects use stainless steel (the most recycled building material in the world), and most of its steel products are recyclable. Many of the company's architectural products help architects, developers, and building owners achieve their energy-efficiency and sustainability goals by improving energy performance, thereby reducing greenhouse gas emissions, providing daylight and natural ventilation, and increasing comfort and safety for occupants. Arcadia Products offers high-performance products that comply with the Leadership in Energy and Environmental Design (LEED) Green Building Rating System. In addition, the company offers renovation solutions to help modernize aging buildings, providing significantly improved energy performance. Arcadia Products is committed to continuing to improve the energy efficiency of products for its customers. Operations Anodized and painted aluminum components for all Arcadia Products divisions are manufactured in Vernon, with additional painting and manufacturing capacity in its Tucson, Arizona, and Connecticut facilities. During the year ended December 31, 2023, Arcadia Products represented approximately 42% of the company's consolidated net sales. Products The Arcadia division manufactures, assembles and sells aluminum window and door systems, as well as architectural components. These include architectural framing systems, windows, curtain walls, entrance systems and sun control products. The company's product offerings allow architects to create distinctive looks for buildings, such as office towers, airports, hotels, education and athletic facilities, health care locations, government buildings, retail centers, mixed use and multi-family residential buildings, while also meeting functional requirements, such as energy efficiency, hurricane, blast and other impact resistance and/or sound control. Wilson Partitions manufactures and sells door framing systems, aluminum doors, sliding systems and glazing systems. Arcadia Custom designs and manufactures thermally broken steel and aluminum windows and doors and custom wood doors and windows. The company offers product warranties that are competitive for the markets in which its products are sold. The nature and extent of these warranties depend upon the product, the market and, in some cases, the customer being served. Suppliers and Raw Materials Materials used in Arcadia and Wilson Partition's commercial products include aluminum extrusions, both finished and unfinished, paint and hardware. Materials used in Arcadia Custom's residential products include aluminum, steel, wood, paint, fabricated glass and hardware. Marketing, Sales, Distribution The Arcadia division relies on a reputation for strong customer service, quality products and competitive lead times to maintain and attract customers. It has strong relationships with local glaziers, installers and subcontractors. Wilson Partitions sells through a national in-house sales force and external sales representatives. Arcadia Custom's sales strategy focuses on direct selling through a national internal sales team and select dealer network that market the company's products to architects and luxury home builders. Ownership and Management Following the closing of the Arcadia Products acquisition in 2021, DMC (through its direct ownership and indirect ownership through the company's subsidiary DMC Korea) owns 60% of Arcadia Products and the remaining 40% is owned by New Arcadia Holdings, Inc., which is wholly-owned by Synergex Group LLC, Trustee of the Munera Family ESBT, and previously the majority owner of Arcadia, Inc. (Munera). Arcadia Products is governed by an Operating Agreement among the company, Arcadia Products and Munera (the Operating Agreement). DynaEnergetics DynaEnergetics designs, manufactures, markets and sells perforating systems and associated hardware for the global oil and gas industry. DynaEnergetics designs, manufactures and sells all five primary components of a perforating system: the initiation system, shaped charges, detonating cord, gun hardware, and a control panel. In 2015, DynaEnergetics began assembling its perforating systems in a controlled environment at its manufacturing facilities. The systems, marketed as DynaStage (DS) Factory-Assembled, Performance-Assured perforating systems, are shipped directly to the customers' remote shop or well site. Since 2015, DynaEnergetics has added several new DS products to accommodate evolving industry conditions and needs. Operations The DynaEnergetics segment seeks to build on its products and technologies, as well as its sales, supply chain and distribution network. Products IS2: DynaEnergetics has focused on the advancement of safe and selective perforating products for use in North America's shale, or onshore, unconventional, oil and gas industry. Among these products are the IS2 Intrinsically Safe Initiating Systems, which include the IS2 Customer Assembled (CA) detonator and the wire-free, plug-in, IS2 Top Fire (TF) detonator. The IS2 TF detonator is the key enabling technology in DynaEnergetics' family of DS Factory-Assembled, Performance-Assured perforating systems. The IS2 detonators require a specific digital code for firing and are immune from induced currents and voltages, static electricity and high-frequency irradiation. These safety features substantially reduce the risk of unintentional detonation and enable concurrent perforating and hydraulic fracturing operations at well sites with multiple wellbores, improving operating efficiencies for customers. In response to the exacting needs of its customers, the company expanded and enhanced the IS2 product line, including adding an IS2 MS igniter specifically designed for its DS MicroSet as well as an upgrade of all IS2 detonators to the more proficient IS2 Express which provides improved performance through a more intuitive automated firing panel process. In 2023, the company introduced a new and improved generation of its intrinsically safe detonator, the IS3. This more technically advanced and compact detonator was developed internally to provide the platform for the next generation of DS systems. DS Systems: The company's DS Infinity Factory-Assembled, Performance-Assured perforating systems combine all of its advanced technologies into a preassembled perforating gun that is armed at the well site with its Plug-and-Go IS2 TF detonator. The IS2 TF detonator is wire-free and eliminates the customary process of wiring the detonator into the perforating system at the well site. All DS systems are operated using the company's in-house designed and manufactured Infinity Control Panel. The Infinity Panel is highly intuitive and allows the gun string to be safely tested and monitored throughout the pump-down operation. Recent design advancements to the IS2 line of initiation products enable customers to safely and reliably fire up to 100 systems and set a plug in a single run. DynaEnergetics has successfully expanded the family of DS perforating systems with various models: DS Echo, for re-frac applications; DS LoneStar, a single-shot system that delivers large, ultra-consistent entry holes, and DS NLine, an oriented systems that features several shaped charges on a lateral plane. During 2022, DynaEnergetics continued to refine its systems to further improve reliability and worked to expand the company's product offerings. In 2023, the company launched DS Gravity 2.0, a next generation self orientating system for oriented perforating and DS NLine 2.0, which includes an improved alignment system for oriented perforating. Both systems utilize the latest generation IS3 detonator. Shaped Charges: DynaEnergetics develops and sells a wide range of shaped charges for use in its perforating systems, including the LoneStar and EchoFrac charges specifically designed for sale in their respective systems. DynaEnergetics also sells HaloFrac charges, which incorporate advancements in liner materials and shaped charge geometry to improve hydraulic fracturing performance, the FracTune family of shaped charges, which delivers uniform hole diameter in the well casing independent of shot phasing and gun positioning within the well bore, and the DPEX family of charges, which feature energetic liners. All three charge lines can be used with the DS perforating system, as well as conventional perforating gun systems across a range of gun diameters. In 2023, DynaEnergetics expanded on its portfolio of equal-entry hole shaped charges through the introduction of Oriented FracTune, an improved oriented equal entry hole product designed to address the precise requirements of oriented perforating applications in the plug and perforating market. These charges enable exploration and production companies and their wireline service providers to choose from a variety of specifically designed shaped charges to match well completion design requirements. TCP Systems: DynaEnergetics Tubing Conveyed Perforating (TCP) systems are customized for individual customer needs and well applications. TCP enables perforating of conventional vertical wells, as well as highly deviated and horizontal wells. These types of wells are increasingly being drilled by the off-shore industry and in applications outside the U.S. TCP tools also perforate long intervals in a single trip, which significantly improves rig efficiency. The company's TCP tool range includes mechanical and hydraulic firing systems, gun releases, redundant firing heads, under-balancing devices and auxiliary components. The company's tools are designed to withstand down-hole temperatures of up to 260 degrees Celsius (500 degrees Fahrenheit) for safe and quick assembly at the well site and to allow unrestricted total system length. Setting and Ballistic Release Tools: DynaEnergetics also sells products that perform critical down-hole functions associated with the perforating process. DS MicroSet is a compact, disposable setting tool used to install the fracking plugs that isolate stages in a multi-stage, unconventional oil or gas well. In 2023, the company launched DS Liberator 2.0, which is a newly designed ballistic release tool which enables wireline service companies to disengage from a perforating string that has become stuck in the well bore. Plug and Abandonment: The company's DynaSlot perforating system is designed for plug and abandonment (P&A) operations. The DynaSlot perforating system facilitates this process by creating access to a full 360-degree area between the rock formations and the tubing and/or casing. Customers use the unique helical perforation pattern created by DynaSlot to perform cement squeeze operations that seal off the wellbore. DynaEnergetics maintains its DPU and XPU shaped charge lines, which are designed for P&A and well remediation applications and enable perforating through two or more layers of casing and into the formation. DynaEnergetics also has successfully developed an encapsulated DynaSlot charge specifically designed for cutting down hole control lines. Most recently, DynaEnergetics developed its next generation DynaSlot shaped charges, designed specifically for severing and cutting flat-pack control lines, which are mounted vertically behind the wellbore tubulars. Cutting control-lines without damaging the well's integrity is a critical step in the process of permanently decommissioning offshore wells. Suppliers and Raw Materials DynaEnergetics' product offering consists of complex components that require numerous high-end inputs. DynaEnergetics utilizes a variety of raw materials for the production of oilfield perforating products, including high-quality steel tubes, steel and copper, explosives, granulates, plastics and ancillary plastic product components. DynaEnergetics obtains its raw materials from a number of different producers in Germany, other European countries, and the U.S., but also purchases materials from other international suppliers. Competition DynaEnergetics faces competition from independent manufacturers of perforating products and from the industry's three largest oil and gas service companies, which produce perforating systems for their own use and also buy systems and other perforating components and specialty products from independent suppliers such as DynaEnergetics. Customer Profile DynaEnergetics' perforating and seismic products are purchased by international and U.S. oilfield service companies of all sizes working in both onshore and offshore oil and gas fields. The company's customers select perforating products based on their leading performance, system compatibility, product pricing, and ability to address a broad spectrum of factors, including pressures and temperatures in the wellbore and geological characteristics of the targeted formation. The customers for the company's energy products can be divided into four broad categories: purchasing centers of large service companies, international service companies, independent international and North America-based service companies (often referred to as wireline companies), and local resellers. Marketing, Sales, Distribution DynaEnergetics' worldwide marketing and sales efforts for its oilfield products are managed from Troisdorf, Germany and Houston, Texas. DynaEnergetics' sales strategy focuses on direct selling, distribution through licensed distributors and independent sales representatives, education of current and prospective service-company customers about its products and technologies, and education of E&P companies about the benefits of its products and technologies in an effort to generate pull-through demand. DynaEnergetics sells its oilfield and seismic products through wholly owned affiliates in Germany, the U.S., and Canada, and through independent sales agents in other parts of the world. DynaEnergetics serves the Americas region through its network of sales and distribution centers in the United States and Canada. DynaEnergetics also designs and manufactures customized perforating products for third-party customers according to their designs and requirements. Research and Development (R&D) The company's R&D costs were $5,610 for the year ended December 31, 2023. Operations During the year ended December 31, 2023, the NobelClad segment represented approximately 15% of the company's consolidated net sales. NobelClad's metal products are primarily produced for custom projects and conform to requirements set forth in customers' purchase orders. Products NobelClad manufacturing technology is used in a variety of product applications. DetaClad: The company's explosion clad plates and cylinders, available in 260 compatible and non-compatible metal combinations, are the basis of the world's pressure vessels, towers and crystallizers used in many industries. Tube Sheets: The company's clad tube sheets are made from corrosion-resistant alloys, making them ideal for applications ranging from refrigeration chillers on fishing boats to air conditioners for use in food and pharmaceutical manufacturing. Vessel Heads & Cylinders: NobelClad delivers high-quality clad heads of all sizes for reactors, heat exchangers and process vessels. The company adapts its head forming process to specific clad metal combinations. Structural Transition Joints: NobelClad's structural transition joints permanently join metals without mechanical fasteners. Shipbuilders turn to the company to connect superstructures and bulkheads to steel hulls, framing and deck components. Electrical Transition Joints: NobelClad's electrical transition joints offer strong, low electrical resistance solutions for aluminum and zinc smelting, when anode clad and cathode applications must operate at elevated temperatures. Cylindra Cryogenic Transition Joints: Compared with bolted connection systems, Cylindra offers an easier, more reliable way to connect stainless steel to aluminum pipes for producing LNG and industrial gases in Air Separation Units (ASU). DetaPipe Spools, Elbows and Branches: NobelClad develops reactive metal pipe spools and elbows for piping systems in demanding high-pressure and high-temperature processes. This new technology allows for end users to benefit from the corrosion resistance performance and process safety that metals like zirconium, titanium and tantalum provide. Customer Profile NobelClad's customers can be divided into three tiers: the product end users (e.g., operators of chemical processing plants, and aluminum smelting plants), the engineering contractors that design and construct plants for end users, and the metal fabricators that manufacture the products or equipment that utilize NobelClad's metal products. It is typically the fabricator that places the purchase order with NobelClad and pays the corresponding invoice. NobelClad has developed strong relationships over the years with the engineering contractors, process licensors, and equipment operating companies that frequently act as buying agents for fabricators. Marketing, Sales, Distribution NobelClad conducts its selling efforts by marketing its serv s' senior management, direct sales personnel, program managers, and independent sales representatives. Prospective customers in specific industries are identified through networking in the industry, cooperative relationships with suppliers, public relations, customer references, inquiries from technical articles and seminars, website inquiries, webinars, and trade shows. NobelClad's sales office in the United States covers both North and South America. Its sales offices in Europe cover the full European continent, Africa, the Middle East, and India. NobelClad also has a sales office in South Korea and China to address the Asian markets and uses contract agents to cover various other countries. Contract agents typically work under multi-year agreements which are subject to sales performance targets, as well as compliance with NobelClad quality, customer service and compliance expectations. By maintaining relationships with its existing customers, developing new relationships with prospective customers, and educating all its customers as to the technical benefits of NobelClad's products, NobelClad endeavors to assist in setting standard specifications, both by the company's customers and the American Society of Mechanical Engineers and ASTM International, to ensure that the highest quality and reliability are achieved. History The company was founded in 1965. It was incorporated in the state of Colorado in 1971 and reincorporated in the state of Delaware in 1997. The company was formerly known as Dynamic Materials Corporation and changed its name to DMC Global Inc. in 2016.