NAPCO Announces Acquisition Of Marks USA
NAPCO Security Systems Inc. recently announced the acquisition of Marks USA. The purchase price for the business and substantially all of the assets was $25 million and the assumption of current liabilities. The company funded the acquisition with a term loan from its principal lenders.
Marks USA, a long established privately-held company, is located in Amityville, N.Y. and is a independent manufacturer of industrial, commercial and institutional locks. Yearly revenue for its fiscal year ended July 31, approximates $25 million with pre-acquisition EBITDA of approximately $4 million. Management anticipates that the acquisition will immediately be accretive to NAPCO’s per share results.
“This acquisition underscores NAPCO’s commitment to its customers and shareholders by offering enhanced growth opportunities through organic means as well as strategic acquisitions,” said Richard Soloway, NAPCO’s president and CEO. “We are proud of our previous acquisitions of Alarm Lock and Continental, which have been seamlessly and successfully integrated into our Company. We believe that NAPCO and its employees, customers and shareholders will benefit greatly from this Marks USA acquisition. Marks USA complements our broad range of security systems and will help us advance our leadership position in providing more cutting-edge security technology and solutions to our customers.”
“We are delighted to be part of NAPCO Security Systems and we believe the combination will enhance the opportunity for long-term growth,” said George Marks, president of Marks USA. “Being part of NAPCO provides Marks USA with increased distribution, market penetration, purchasing leverage as well as strengthening the research and development capabilities of both companies. NAPCO’s proven commitment to research and development, as well as its global distribution capabilities, fits perfectly with Marks’ strategic positioning of our new lines of more than 300 custom designed architectural and industrial locksets for major buildings and hospitals. The new team of NAPCO and Marks will strengthen our ability to support our growing network of customers with expanded sales, manufacturing and customer service departments. I look forward to our collaboration with NAPCO which will bring us to new heights.”