BOULDER - Dynamic Materials Corp. in Boulder has acquired Alberta, Canada-based LRI Oil Tools Inc. in a cash and stock transaction.

Dynamic Materials (Nasdaq:BOOM) paid $650,000 in cash and approximately $172,000 worth of Stock. It turned over 9,584 shares of restricted common stock. Dynamic Materials' stock trades around $18 per share.

The company provides explosion-welded clad metal plates and recently has increased its presence in the oilfield products industry.

Dynamic Materials intends to make an additional capital contribution of approximately $2.2 million into the LRI business to reduce indebtedness and enhance working capital.

LRI, parent company of LRI Perforating Systems Inc., produces and distributes perforating equipment for use by the oil- and gas-exploration and production industry. The business has had a long-term strategic relationship with Dynamic Materials' Oilfield Products segment, and has served for several years as its sole Canadian distributor. LRI employs a staff of approximately 25, and Dynamic Materials expects to retain the current management team.

Yvon Cariou, Dynamic Materials' president and chief executive, said the acquisition strengthens his company's presence "in a strategically important region that is poised for long-range growth. In addition to expanding our product portfolio, LRI improves our distribution platform and immediately enhances our access to a broad spectrum of North American energy companies. Over the long-term, we expect this acquisition could also provide us with a springboard into other geographic end markets."

From 2006 through 2008, LRI recorded average annual sales of approximately $10.6 million (Canadian) and average gross margins of approximately 33 percent, which are comparable to the historic gross margins of Dynamic Materialís Oilfield Product segment.

"A June 2009 report from the Canadian Energy Research Institute forecasts that the Canadian energy exploration and extraction market will grow by 50 percent during the next three years and by 70 percent over the next seven years," said Rolf Rospek, chief executive of Dynamic Materials' Oilfield Products segment. "Given LRI's product portfolio, strategic network of distribution centers and solid customer relationships, we believe this acquisition represents an ideal fit with our business."