Back to top

Image: Bigstock

PRM to Acquire Medical Manufacturing Technologies for $685M

Read MoreHide Full Article

Key Takeaways

  • PRM agreed to acquire MMT for about $685M in an all-cash deal expected to close by early 2026.
  • The purchase adds MMT's machinery and consumables business, which is set to earn $140M in revenues in 2025.
  • PRM plans to fund the deal with debt and cash, expecting net leverage of roughly 2.7x after closing.

Perimeter Solutions, Inc. (PRM - Free Report) announced a definitive agreement to acquire Medical Manufacturing Technologies LLC (“MMT”) from Arcline Investment Management for roughly $685 million. PRM will buy MMT under an all-cash deal, including specific tax benefits.

The transaction is expected to close by the first quarter of 2026 and will be funded through a new secured debt financing $500 million and $185 million of cash on hand.

MMT is a leading provider of highly engineered machinery and aftermarket consumables essential to manufacturing minimally invasive medical devices. This serves as an appropriate fit with PRM’s operating strategy.

MMT also has a strong history of organic and M&A driven growth. MMT generates most of its revenues from proprietary items, with about half derived from the aftermarket. For 2025, MMT is expected to log roughly $140 million in revenues and $50 million of adjusted EBITDA.

The deal complements Perimeter’s focus on businesses in secular growth markets with strong free cash flow, high returns on tangible capital and sustainable earnings power. Following the transaction, the company expects a net leverage ratio of about 2.7x net debt to combined adjusted EBITDA for the last 12 months ending Sept. 30, 2025. The transaction remains subject to regulatory approvals and other closing conditions.

PRM’s shares have gained 124.5% over the past year compared with the industry’s 8.5% decline.

Zacks Investment Research
Image Source: Zacks Investment Research

PRM’s Zacks Rank & Other Key Picks

PRM currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the Basic Materials space areKinross Gold Corporation (KGC - Free Report) , Fortuna Mining Corp. (FSM - Free Report) and Harmony Gold Mining Company Limited (HMY - Free Report) .

At present, KGC sports a Zacks Rank #1, while FSM and HMY carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for KGC’s current-year earnings is pegged at $1.67 per share, indicating a rise of 145.59%. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing it in one, with an average surprise of 17.37%. KGC’s shares have risen 194.4% over the past year.

The Zacks Consensus Estimate for FSM’s current fiscal-year earnings is pinned at 76 cents per share, indicating a 65.22% year-over-year increase. Its shares have surged 107.6% over the past year.

The Zacks Consensus Estimate for HMY’s 2026 earnings is pegged at $2.68 per share, indicating a 132.1% year-over-year increase. HMY’s shares have gained 121.2% over the past year.

Published in