Brady Snaps Up Code for $173M


Brady Corporation (BRC) has announced the acquisition of The Code Corporation, which deals in high-quality barcode scanners and associated software to power track-and-trace applications, for about $173 million. The company will fund the acquisition through a combination of cash and borrowings under its revolving line of credit.

Brady has a significant presence in the high-performance niche application industrial printers and materials market.

Brady expects Code to record sales and EBITDA of $50 million and $10 million, respectively, for the first full fiscal year of its ownership ending July 31, 2022.

J. Michael Nauman, CEO of Brady’s, said, “Code is a highly-regarded brand for its offering of durable high-performance barcode scanners. 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.” (See Brady’s stock analysis on TipRanks)

Wells Fargo analyst Michael McGinn recently upgraded the stock to a Buy with a price target of $70. This implies 26% upside potential from current levels. Shares have gained 16.5% over the past year.

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