CompoSecure to Spin-Off Resolute Holdings Management

Dow Jones2024-12-31

By Stephen Nakrosis

CompoSecure on Monday said it plans to spin off Resolute Holdings Management, a move which will see the investment team at CompoSecure and their associated costs move to Resolute.

Under the terms of the deal, the CompoSecure Holdings subsidiary will enter into a management agreement with Resolute which will see Resolute receive a quarterly management fee equal to 2.5% of CompoSecure's latest twelve months' adjusted EBITDA, the company said.

Resolute will provide CompoSecure's business with certain services, including providing oversight of its capital allocation strategy.

CompoSecure Executive Chairman David Cote will serve as Resolute's executive chairman, while CompoSecure director Tom Knott will take on the role of chief executive officer. Resolute is expected to trade on the Nasdaq under the ticker RHLD, and is also expected to have limited profitability in fiscal year 2025, according to CompoSecure.

The deal is expected to be taxable for both CompoSecure and all existing shareholders, the company said, adding the spinoff is expected to be completed in the first quarter of 2025.

CompoSecure shares spiked in the after-hours market following the announcement, and traded as high as $18.50 before giving up gains. The shares, which ended the day's regular session at $15.65, were essentially flat about 30 minutes into the late-trading session.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

December 30, 2024 16:38 ET (21:38 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2495050285?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2024-12-31 05:38","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2495050285","market":"hk","top_or_hot":-1,"title":"CompoSecure to Spin-Off Resolute Holdings Management","media":"Dow Jones","content":"<font class=\"NormalMinus1\" face=\"Arial\">\n<pre>\n \n</pre>\n<p>\n  By Stephen Nakrosis \n</p>\n<pre>\n \n</pre>\n<p>\n  <a href=\"https://laohu8.com/S/CMPO\">CompoSecure</a> on Monday said it plans to spin off Resolute Holdings Management, a move which will see the investment team at CompoSecure and their associated costs move to Resolute. \n</p>\n<p>\n  Under the terms of the deal, the CompoSecure Holdings subsidiary will enter into a management agreement with Resolute which will see Resolute receive a quarterly management fee equal to 2.5% of CompoSecure's latest twelve months' adjusted EBITDA, the company said. \n</p>\n<p>\n  Resolute will provide CompoSecure's business with certain services, including providing oversight of its capital allocation strategy. \n</p>\n<p>\n  CompoSecure Executive Chairman David Cote will serve as Resolute's executive chairman, while CompoSecure director Tom Knott will take on the role of chief executive officer. Resolute is expected to trade on the Nasdaq under the ticker RHLD, and is also expected to have limited profitability in fiscal year 2025, according to CompoSecure. \n</p>\n<p>\n  The deal is expected to be taxable for both CompoSecure and all existing shareholders, the company said, adding the spinoff is expected to be completed in the first quarter of 2025. \n</p>\n<p>\n  CompoSecure shares spiked in the after-hours market following the announcement, and traded as high as $18.50 before giving up gains. The shares, which ended the day's regular session at $15.65, were essentially flat about 30 minutes into the late-trading session. \n</p>\n<pre>\n \n</pre>\n<p>\n  Write to Stephen Nakrosis at stephen.nakrosis@wsj.com \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  December 30, 2024 16:38 ET (21:38 GMT)\n</p>\n<p>\n  Copyright (c) 2024 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>CompoSecure to Spin-Off Resolute Holdings Management</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCompoSecure to Spin-Off Resolute Holdings Management\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-31 05:38 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://dowjonesnews.com/newdjn/logon.aspx?AL=N><strong>Dow Jones</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>By Stephen Nakrosis \n\n\n \n\n\nCompoSecure on Monday said it plans to spin off Resolute Holdings Management, a move which will see the investment team at CompoSecure and their associated costs move to ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4170","symbol_name":"电脑硬件、储存设备及电脑周边","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2495050285","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2495050285","pubTimestamp":1735594680,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"CompoSecure on Monday said it plans to spin off Resolute Holdings Management, a move which will see the investment team at CompoSecure and their associated costs move to Resolute.Under the terms of the deal, the CompoSecure Holdings subsidiary will enter into a management agreement with Resolute which will see Resolute receive a quarterly management fee equal to 2.5% of CompoSecure's latest twelve months' adjusted EBITDA, the company said.Resolute will provide CompoSecure's business with certain services, including providing oversight of its capital allocation strategy.CompoSecure Executive Chairman David Cote will serve as Resolute's executive chairman, while CompoSecure director Tom Knott will take on the role of chief executive officer. Resolute is expected to trade on the Nasdaq under the ticker RHLD, and is also expected to have limited profitability in fiscal year 2025, according to CompoSecure.CompoSecure shares spiked in the after-hours market following the announcement, and tr","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4170":"电脑硬件、储存设备及电脑周边","CMPO":"CompoSecure"},"translate_title":"CompoSecure将分拆Resolute Holdings Management","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CMPO":1},"content_text":"By Stephen Nakrosis \n\n\n \n\n\nCompoSecure on Monday said it plans to spin off Resolute Holdings Management, a move which will see the investment team at CompoSecure and their associated costs move to Resolute. \n\n\n  Under the terms of the deal, the CompoSecure Holdings subsidiary will enter into a management agreement with Resolute which will see Resolute receive a quarterly management fee equal to 2.5% of CompoSecure's latest twelve months' adjusted EBITDA, the company said. \n\n\n  Resolute will provide CompoSecure's business with certain services, including providing oversight of its capital allocation strategy. \n\n\n  CompoSecure Executive Chairman David Cote will serve as Resolute's executive chairman, while CompoSecure director Tom Knott will take on the role of chief executive officer. Resolute is expected to trade on the Nasdaq under the ticker RHLD, and is also expected to have limited profitability in fiscal year 2025, according to CompoSecure. \n\n\n  The deal is expected to be taxable for both CompoSecure and all existing shareholders, the company said, adding the spinoff is expected to be completed in the first quarter of 2025. \n\n\n  CompoSecure shares spiked in the after-hours market following the announcement, and traded as high as $18.50 before giving up gains. The shares, which ended the day's regular session at $15.65, were essentially flat about 30 minutes into the late-trading session. \n\n\n \n\n\n  Write to Stephen Nakrosis at stephen.nakrosis@wsj.com \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  December 30, 2024 16:38 ET (21:38 GMT)\n\n\n  Copyright (c) 2024 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"corporation","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.30.0","shortVersion":"4.30.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2495050285"}