Brady Corporation (NYSE: BRC) ("Brady") today completed the acquisition of The Code Corporation ("Code" or the "Company") for approximately $173 million. Brady will fund the transaction with cash on hand and borrowings on its existing revolving line of credit. Code has forecasted sales of nearly $50 million for Brady’s first full fiscal year of ownership, which ends July 31, 2022. Brady anticipates EBITDA from Code of approximately $10 million for the first full fiscal year ending July 31, 2022, inclusive of integration-related costs.
Code specializes in high-performance barcode readers and scanning software that provides data capture and powers track-and-trace applications. Founded more than 20 years ago, the bulk of Salt Lake City-based Code’s sales are in U.S. healthcare. The Company is expanding its barcode reader portfolio with devices for industrial track-and-trace applications. Brady is a leader in high-performance niche application industrial printers and materials; acquiring Code will optimally position Brady as a full-service provider of industrial track-and-trace applications.
"Code is a highly regarded brand for its offering of durable, high-performance barcode scanners," said Brady’s President and Chief Executive Officer, J. Michael Nauman. "The addition of Code’s high-quality complementary product offering to Brady’s already existing leadership position in niche application industrial printers and materials will accelerate Brady’s expansion in the industrial track-and-trace market. Once integrated, our complete service offering in these faster-growing end markets should accelerate Brady’s overall growth profile. We also intend to increase investments in research and development and increase Code’s addressable market through Brady’s global footprint throughout Europe, Asia and the Americas."
Kent Hansen, Code CEO, stated, "Over the last several years, we’ve expanded our product offering, developed strong software solutions, expanded our patent portfolio, and have secured a strong position in the healthcare industry. We are proud of what we’ve accomplished at Code. The sale of Code to Brady, a market leader in printing and materials, is a very exciting next chapter for The Code Corporation. Brady’s strong presence in both healthcare and industrial settings will most certainly open up many more opportunities than those that would have been available to us as an independent company. We believe that the sale to Brady provides an unparalleled opportunity for future growth, access to new markets and access to new customer sets."
About Brady Corporation
Brady Corporation is an international manufacturer and marketer of complete solutions that identify and protect people, products and places. Brady’s products help customers increase safety, security, productivity and performance and include high-performance labels, signs, safety devices, printing systems and software. Founded in 1914, Brady has a diverse customer base in electronics, telecommunications, manufacturing, electrical, construction, medical, aerospace and a variety of other industries. Brady is headquartered in Milwaukee, Wisconsin and as of July 31, 2020, employed approximately 5,400 people in its worldwide businesses. Brady’s fiscal 2020 sales were approximately $1.08 billion.
About Code Corporation
For more than 20 years, Code Corporation has been an industry pioneer, leader, and champion for data capture innovation and has garnered more than 100 patents. By crafting and continuing to perfect its unique decoding algorithms, Code and its line of image-based scanning and decoding technology consistently deliver unparalleled performance that companies around the world depend on every day. Code designs and manufactures a complete line of market-leading hardware and software data capture solutions. Code products are not only valued for providing a consistent level of workflow efficiency year after year, but also for their ergonomic design, durability, ease of customization, and seamless integration. Code is headquartered in Salt Lake City, Utah with offices in Boston and Amsterdam. For more, please visit www.codecorp.com.