Cadre Holdings Expands Nuclear Safety Vertical with Strategic Acquisitions

Cadre Holdings, Inc. (NYSE: CDRE), a global leader in the manufacturing and distribution of safety equipment and related products, has announced its intention to acquire multiple leading nuclear brands. The strategic acquisitions, Carr's Engineering Limited and Alpha Safety Intermediate, LLC, will expand Cadre's nuclear safety vertical, increase its geographic footprint, and provide entry into new nuclear safety categories. The transactions are expected to close in the first half of 2025 and the first quarter of 2024, respectively, subject to customary closing conditions.

Carr's Engineering Limited, excluding Chirton Engineering, and Carr's Engineering (US), Inc. (collectively, the "Engineering Division"), are subsidiaries of Carr’s Group plc. The Engineering Division is comprised of industry-leading brands, including Wälischmiller GmbH, CarrsMSM, Bendalls Engineering, NW Total Engineered Solutions, and NuVision Engineering, Inc. With sites in the United Kingdom, Germany, and the United States, the Engineering Division designs, manufactures, and services equipment, vessels, precision components, and remote handling systems for nuclear end-markets. The brands within the Engineering Division are highly complementary to Cadre's nuclear safety business and will both expand the Company's presence in international markets and provide entry into new product categories within the nuclear market segment. The Engineering Division generated approximately £51 million in revenues for the fiscal year ended August 31, 2024.

Alpha Safety Intermediate, LLC, the operating parent of Alpha Safety, is a leading nuclear safety solutions company that provides highly engineered, technical products and services focused on radiation protection and safety in mission-critical operating environments. Alpha Safety offers a diversified suite of capabilities, including ventilation and containment, engineered containers, field services and maintenance, advanced transportation containers, specialty filters, and radiometric instrumentation. Alpha Safety has 40+ year entrenched relationships with key Environmental Safety, National Security, and Nuclear Energy customers, who rely upon the company’s proprietary products and services to protect critical operational personnel and the environment. With 29 patents, strict regulation and compliance protocols, and significant IP moats, Alpha Safety maintains a protected market position due to the technical nature of its products. The business is expected to generate approximately $44 million in revenues for the calendar year ending December 31, 2023.

Warren B. Kanders, Chairman and CEO of Cadre, stated, "We are pleased to strengthen our market-leading safety platform with the agreement to acquire the Engineering Division from Carr's Group. Consistent with our strategic plan to scale Cadre's nuclear safety vertical, these businesses will expand our international footprint and grow our reach into the nuclear market with entry into automation, robotics, and nuclear medicine. These are best-in-class brands at the forefront of nuclear safety that manufacture highly engineered products supporting mission-critical initiatives with deeply established customer relationships and compelling growth opportunities. The Engineering Division derives the majority of its revenue outside the United States and is expected to provide Cadre with a more balanced revenue split globally in the nuclear market."

Brad Williams, President of Cadre, added, "In 2024, we delivered on an objective we set at the time of our IPO, diversifying our platform and establishing a nuclear safety vertical adjacent to our core military and law enforcement safety focus. We continue to believe in the consistent growth profile of the nuclear safety sector, which is underpinned by strong evolving global demand from energy, defense, and nuclear waste tailwinds. This transaction represents an important next step in scaling the vertical and we anticipate additional opportunities to augment growth through select acquisitions in line with our key criteria. Moving forward, we will continue to lean on the Cadre operating model to drive improvements in our businesses and remain well positioned to build on our track record of value creation and enhance our market leadership over the long term."

The transactions are expected to be funded through available cash on the Company's balance sheet and its credit facility. Houlihan Lokey served as the exclusive financial advisor to Alpha Safety.

The acquisition of these leading nuclear brands will significantly enhance Cadre Holdings' technological capabilities, particularly in robotics and remote handling systems – critical growth areas in nuclear safety. The expansion into nuclear medicine and fusion markets opens new revenue streams with high barriers to entry. The strategic value of acquiring Wälischmiller and associated brands is substantial in the evolving nuclear sector, as these assets provide critical remote handling technologies essential for nuclear decommissioning, waste management, and emerging fusion energy projects. The timing is particularly advantageous given the global nuclear renaissance and increased focus on clean energy initiatives.



The combined portfolio now spans traditional nuclear safety equipment to advanced robotics and automation solutions, positioning Cadre as a comprehensive nuclear safety solutions provider. The addition of nuclear medicine capabilities is particularly noteworthy, as this segment shows strong growth potential due to increasing demand for radiopharmaceuticals and therapeutic applications. Entry into the fusion energy market through Wälischmiller's expertise represents a forward-looking strategic move, as this sector attracts significant investment and could represent a major growth opportunity in the coming decades.

The acquisition strategically positions Cadre to capitalize on multiple growth drivers in the nuclear sector. Global nuclear power capacity is expanding, with numerous new reactor projects under development worldwide. The nuclear medicine market is projected to grow significantly, driven by increasing cancer treatment applications and diagnostic procedures. The geographic revenue diversification reduces exposure to single-market risks and provides access to key nuclear markets in Europe and Asia. The transaction aligns with broader industry trends toward automation and remote handling solutions in hazardous environments, which command premium margins due to their specialized nature.

Post-acquisition integration risks appear manageable given the complementary nature of the businesses and retention of key management. The deal strengthens Cadre's competitive position against larger industrial conglomerates in the nuclear safety space while maintaining focus on high-value, mission-critical applications. Cadre Holdings' strategic acquisitions of leading nuclear brands will undoubtedly drive revenue and profit growth, further solidifying its position as a global leader in the manufacturing and distribution of safety equipment and related products.