To Acquire Firefighter Turnout Gear Manufacturer Globe
• With this acquisition, MSA
strengthens its position as a leader in the North American
market for firefighter personal protective equipment (PPE),
while expanding its core product portfolio in a key customer
• Transaction is valued at $215 million, or
approximately 2 times revenue and 9 times EBITDA on trailing
• Expected to be accretive to GAAP reported
EPS in the first 12 months following the closing of the
• Transaction will be financed through
incremental borrowings with an after-tax cost of less than 2
MSA Safety Incorporated (NYSE: MSA) today announced
that it has entered into a definitive agreement to acquire Globe
Holding Company, LLC (“Globe”) in an all-cash transaction valued
at $215 million. Based in Pittsfield, NH, Globe is a leading
innovator and provider of firefighter protective clothing and
boots, with annual revenue of approximately $110 million and 420
employees at four U.S. locations.
“Helping to keep
firefighters safe has been a constant of MSA’s mission since the
1920s,” said William M. Lambert, MSA Chairman and CEO.
“With virtually no product overlap, this acquisition aligns
extremely well with our corporate strategy in that it
strengthens our leading position in the North American fire
service market and it expands our Core Product portfolio in a
key customer segment.”
Founded in 1887, Globe is North
America’s oldest and largest manufacturer of firefighter
protective clothing – referred to as ‘turnout gear’ in the fire
service industry. The company has earned a reputation for
providing high quality, customized gear that combines innovative
design with advanced construction methods that utilize
state-of-the-art manufacturing equipment and processes.
Most recently, the company introduced a line of
athletic-inspired turnout gear featuring fabrics that are
significantly lighter in weight when compared to conventional
gear. Called ATHLETIX™, the new protective clothing
integrates stretch fabrics that allow a close, body-contoured
fit to provide an unprecedented range of motion and flexibility.
“The acquisition of Globe comes at a time when the fire
service industry is undergoing a significant mindset shift
regarding firefighter health and wellness,” Mr. Lambert noted.
“Given this trend, which is driving a need for multiple sets of
turnout gear for individual firefighters, as well as a
heightened awareness concerning the importance of routine
laundering and care, this acquisition nicely positions MSA and
Globe to meet those needs as well as any potential increase in
the demand for firefighter turnout gear,” Mr. Lambert said.
Globe President Don Welch commented, “From the start, this
acquisition has been about securing the future of Globe with a
good fit for both organizations – from a culture standpoint,
from a product synergy perspective and from a market coverage
point of view,” he said. “We are excited about today’s
news as we see this acquisition as a great match for Globe and
for MSA on all of these fronts.”
Mr. Lambert concluded:
“The brands of MSA, Cairns Helmets (owned by MSA) and Globe
represent more than 400 combined years of serving the fire
service industry, with one common goal: protecting the
health and safety of firefighters. Our combined
organization will leverage both companies’ deep knowledge of
firefighter needs, as well as our intense dedication to the
individual firefighter, to create a dynamic new entity in the
North American fire service market focused on advancing
innovation in firefighter safety.”
The transaction is
expected to close in the third quarter of 2017, subject to the
satisfaction of customary closing conditions, including receipt
of regulatory approvals.
In connection with the
transaction, Reed Smith LLP is providing legal counsel to MSA
and Devine Millmet is providing legal counsel to Globe.
Belden Hill Partners is acting as financial advisor to Globe.