Perimeter Solutions’ indirect subsidiary, Perimeter Holdings, LLC, will issue $550 million of senior secured notes due 2034 to fund the cash consideration for its $685 million acquisition of Medical Manufacturing Technologies (MMT). The notes are fully guaranteed by Perimeter Intermediate, LLC, the direct parent of Perimeter Holdings, and are secured by a first‑priority interest in the company’s assets. If the MMT purchase is not consummated by September 9, 2026, or if Perimeter Holdings decides not to pursue the acquisition, the notes will be redeemed.
MMT, a leading provider of highly engineered machinery and aftermarket services for minimally invasive medical devices, is expected to contribute roughly $140 million in revenue and $50 million in adjusted EBITDA in 2025. CEO Haitham Khouri described the deal as an “excellent fit” that adds a recurring aftermarket business to Perimeter’s portfolio, while CFO Kyle Sable highlighted that MMT aligns with the company’s focus on secularly growing markets with strong free cash flow and durable earnings power.
The financing will increase Perimeter’s leverage to a net debt‑to‑adjusted EBITDA ratio of about 2.7× for the twelve months ended September 30, 2025, but the company’s current ratio remains healthy at 2.22 and its Altman Z‑Score is 1.72. Perimeter Holdings also plans to amend its revolving credit facility to a $200 million limit, extending its maturity, though the amendment is not guaranteed. The notes provide the liquidity needed to close the MMT transaction, expected in the first quarter of 2026, and strengthen the balance sheet for future growth initiatives.
In Q3 2025, Perimeter reported adjusted earnings per share of $0.82, up from $0.75 in Q3 2024, and revenue of $315.4 million, a 9% year‑over‑year increase. The earnings beat of $0.07 per share was driven by disciplined cost management and a favorable mix shift toward higher‑margin specialty products. The strong quarterly performance underpins management’s confidence that the new debt will be supported by the cash generation capability of the combined business.
The acquisition and accompanying debt issuance represent a strategic pivot into the medical device manufacturing sector, diversifying Perimeter’s revenue base and adding a high‑growth, recurring‑revenue business. The deal is expected to be accretive to adjusted earnings and free cash flow, reinforcing the company’s long‑term growth trajectory.
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