Brady Corp. has acquired The Code Corp. for approximately $173 million. Brady will fund the transaction with cash on hand and borrowings on its existing revolving line of credit.
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.
“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.”