Brady Corp., a Milwaukee-based provider of identification systems that help companies improve productivity, performance, safety and security, has acquired Code Corp. for approximately $173 million. Salt Lake City-based Code Corp. specializes in high-quality barcode scanners and the associated software to power track-and-trace applications.
Code, founded in 1997, sells primarily to the U.S. healthcare industry. The company also has a growing product offering of barcode scanners designed for industrial track-and-trace applications. Brady deals in high-performance niche application industrial printers and materials and the acquisition of Code will better position Brady as a full-service provider of industrial track-and-trace applications, Brady said in announcing the acquisition. The companies anticipate approximately $50 million in sales of Code products for Brady’s first full fiscal year of ownership.
“Over the last several years, we expanded our product offering, developed strong software solutions, expanded our patent portfolio, and have secured a strong position in the healthcare industry,” said Kent Hansen, CEO of Code. “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 Corp. 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.”
“Code is a highly regarded brand for its offering of durable high-performance barcode scanners,” said J. Michael Nauman, Brady’s president and CEO. “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.”