Resolute Holdings Expands Presence with CompoSecure Acquisition

Resolute Holdings Completes Majority Stake Acquisition in CompoSecure

Resolute Holdings I, LP has successfully wrapped up its transaction to acquire a majority interest in CompoSecure, Inc., a leading technology provider in the payment card space. This strategic maneuver positions Resolute to leverage its expertise in capital management to enhance the operational efficacy of CompoSecure while expanding its market influence.

Leadership and Board Transitions

As part of the acquisition, Resolute appointed David Cote as the executive chairman of CompoSecure's board of directors. Cote brings over 40 years of executive experience from his tenure as CEO of Honeywell and his current role at Vertiv. Alongside him, Tom Knott, Joseph DeAngelo, Roger Fradin, Mark James, and John Cote have also joined the board, bringing a wealth of knowledge from various sectors.

Impact of the Acquisition

This acquisition marks a significant milestone for CompoSecure, as Resolute has purchased 49.3 million Class A shares, amounting to approximately 60% of the company’s outstanding shares. The total transaction value reached an impressive $372 million. With this new investment, Resolute aims to bolster CompoSecure’s growth trajectory and operational processes while focusing on expanding its customer base through strategic mergers and acquisitions.

Strategic Vision Moving Forward

David Cote expressed enthusiasm regarding the new phase CompoSecure is embarking on. He stated, "We intend to explore initiatives aimed at enhancing organic growth and improving operational efficiencies. Our extensive resources will provide CompoSecure with a robust foundation for transformative development in the payment technology landscape."

Newly Appointed Board Members and Their Contributions

The newly appointed board members are all recognized industry leaders who will aid in guiding CompoSecure through its growth strategy:

David Cote: As the executive chairman, Cote’s extensive experience at global companies will be pivotal for CompoSecure’s growth.

Tom Knott: Previously CEO of Goldman Sachs Acquisition Holdings, Knott's background in business acquisitions will be crucial during this transition.

Joseph J DeAngelo: Having served HD Supply Holdings expansively, DeAngelo’s experience will support operational development within CompoSecure.

Roger Fradin: His previous role as president and CEO of Honeywell’s industry sector underlines his suitability for steering strategic growth.

Mark James: Former CHRO at Honeywell, his expertise in human resources will help in navigating cultural integration.

John Cote: His insights from SRM Equity Partners and investment banking will aid in leveraging financial opportunities for the growing company.

The Departures and Future Direction

As new members join the board, CompoSecure also acknowledges the significant contributions of departing members Mitchell Hollin and Michele Logan. Both individuals have played essential roles in the company’s historic journey, and their retirement marks a transition towards new leadership.

About Resolute Holdings

Resolute Holdings is spearheaded by David Cote and Tom Knott, dedicated to investing in firms that can benefit from systematic operational improvements. With more than four decades of experience, Cote leads the firm’s mission to deploy capital effectively and enhance shareholder value, a strategy he successfully executed at Honeywell and Vertiv.

About CompoSecure

Established in 2000, CompoSecure focuses on providing secure payment solutions through its innovative technologies, offering both physical and digital asset safety. Its products, including premium metal cards and advanced security features like Arculus authentication, cater to diverse clients worldwide, ensuring trust and securing transactions.

Frequently Asked Questions

What is the significance of Resolute's acquisition of CompoSecure?

The acquisition allows Resolute to leverage its investment expertise while enhancing CompoSecure's growth and operations.

Who has been appointed to the board of CompoSecure?

New board members include industry veterans like David Cote and Tom Knott, among others.

What are the main goals post-acquisition?

The goals include enhancing operational efficiency, diversifying the customer base, and facilitating mergers and acquisitions.

What is CompoSecure known for?

CompoSecure specializes in technology-driven payment card solutions that combine security with appealing design.

How does Resolute Holdings plan to utilize its expertise?

Resolute aims to implement a systematic operational strategy to drive growth and bolster shareholder value at CompoSecure.

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