Cadre Holdings Completes Strategic Acquisition of TYR Tactical

Cadre Holdings US12763L1052

Cadre Holdings has finalized its acquisition of tactical equipment provider TYR Tactical, a move the company expects will immediately boost its earnings per share and EBITDA margins. The completion of the deal, which integrates the security equipment specialist into Cadre's portfolio, was confirmed in recent SEC filings.

The total consideration for the acquisition amounts to approximately $145 million. This sum comprises a cash payment of $120 million alongside $25 million in Cadre Holdings stock and Restricted Stock Units (RSUs). Separately, the company executed a real estate transaction, purchasing TYR Tactical's operational facilities in Peoria, Arizona, for an additional $30 million in cash.

To fund the cash portion, Cadre utilized existing liquidity and drew upon a revolving credit facility. The agreement also includes an earn-out provision, allowing for future performance-based payments of up to $25 million. These contingent payments are tied to TYR Tactical achieving specific revenue targets between 2026 and 2028. Furthermore, $1 million in RSUs have been allocated for employee retention purposes.

Strategic Rationale and Shareholder Returns

This acquisition is a strategic step for Cadre to enhance its engineering capabilities and technical expertise. A key objective is to strengthen the company's access to the European defense market through TYR's established presence. The expansion coincides with Cadre's ongoing commitment to increasing shareholder returns. The board has approved a raise in the quarterly cash dividend to $0.10 per share, marking the third consecutive increase since January.

Market Performance and Analyst Outlook

Cadre's stock is currently trading in a range between $41.00 and $42.00, hovering near its 52-week high of $46.64. Market observers view the company's growth trajectory positively, with a focus on how swiftly the integration can deliver the anticipated margin improvements.

The consensus price target among six covering analysts stands at $48.67. This implies a potential upside of roughly 15% from current trading levels. Shareholders of record as of January 30 will receive the increased dividend, with payment scheduled for February 13.