Pittsburg-based MSA Safety completes acquisition of Globe Manufacturing
All-cash transaction valued at $215 million for firefighter protective clothing manufacturer
MSA Safety Incorporated, a Pittsburg-based maker of sophisticated safety products, has completed its acquisition of Globe Holding Company, LLC of Pittsfield, New Hampshire.
The all-cash transaction, which MSA announced in late June, was valued at $215 million, or approximately two times the revenue and nine times EBITDA on a trailing 12-month basis. It was financed through incremental borrowings with an after-tax cost of less than 2 percent.
Globe manufactures firefighter protective clothing and boots. It has approximately 420 employees across four U.S. locations — two protective clothing manufacturing facilities in Pittsfield, NH and Ada, Okla., a facility located in Auburn, Maine that specializes in firefighter footwear, and a protective clothing cleaning and repair facility in Fairfax, Va. There are 420 employees in total.
“Globe is a highly recognized and respected brand of firefighter turnout gear, which very nicely complements our own line of firefighter protective equipment,” said William M. Lambert, MSA chairman and CEO. “With virtually no product overlap, the acquisition aligns well with our corporate strategy in that it expands our core product portfolio in a key customer segment. More simply, it means we can now help protect firefighters from head to toe, with Cairns Helmets, our industry leading G1 self-contained breathing apparatus, and Globe turnout gear and boots.”
Over the past several weeks, Mr. Lambert said the company has been focused on developing a cross-functional integration process.
“We have a very experienced integration team comprised of functional area business leaders from both organizations,” said Lambert. “Overall, as we prepared for today's closing, this team has developed a plan that, among other things, ensures we leverage the strong equity of the Globe brand and identifies ways to maintain the processes and practices that have made Globe successful for so many years.”
Globe Manufacturing's management team, including previous owners Don Welch, Rob Freese and Gef Freese, will continue to work for the company over the short term to ensure an effective transition.
“The entire Globe team is looking forward to building a rewarding future under this new ownership for our customers, employees and communities,” said Globe President Don Welch. “We think that this combination is a great fit and will add significant value beyond what we could accomplish on our own.”