Resolute Holdings Acquires Majority CompoSecure Stake, Appoints David Cote Chairman

Resolute Holdings I, LP completed its acquisition of a majority stake in CompoSecure, Inc., which was facilitated by stock purchase agreements between Resolute and CompoSecure shareholders. David Cote, ex-CEO of Honeywell, has been appointed executive chairman, and five new board members have been added.

Resolute Holdings I, LP, an investment firm led by the esteemed duo of David Cote and Tom Knott, has recently made a significant move in the financial industry by acquiring a majority stake in CompoSecure, Inc. (CMPO) [1]. This transaction, facilitated by stock purchase agreements between Resolute and CompoSecure shareholders, marks the first investment for Resolute Holdings and promises to deliver substantial value to all shareholders.

David Cote, the former CEO of Honeywell, will assume the role of executive chairman upon completion of the deal. Five new board members will also be added to the CompoSecure board, ensuring a fresh perspective and the necessary expertise to drive growth.

The acquisition of CompoSecure is not just about increasing ownership; it also aims to simplify the corporate structure of the company. This simplification will result in higher retained annual cash flow and better alignment of all shareholders. Moreover, the elimination of the dual-class structure will eliminate tax distributions related to the Class B units, leading to improved financial efficiency.

CompoSecure, a leader in metal payment cards, security, and authentication solutions, boasts an impressive management team, a leading market position, attractive long-term growth prospects, technological differentiation, and robust free cash flow generation. David Cote and Tom Knott, recognizing the potential in CompoSecure, see significant opportunity to continue growing the company while also diversifying its business and customer base through incremental M&A.

Cote's extensive career and unparalleled track record make him the perfect choice to lead CompoSecure into its next phase of growth. The addition of the new board members will bring fresh perspectives and expertise, ensuring that the company remains competitive and continues to innovate.

In summary, the acquisition of CompoSecure by Resolute Holdings I, LP is a strategic investment that promises to deliver long-term value to all shareholders. The simplification of the corporate structure, the appointment of David Cote as executive chairman, and the addition of new board members are all steps in the right direction for CompoSecure as it continues to grow and innovate in the competitive financial industry.

[1] Resolute Holdings Acquire Majority Interest in CompoSecure. (2024, August 7). Retrieved from https://ir.composecure.com/news-releases/news-release-details/resolute-holdings-acquire-majority-interest-composecure-372