AMITYVILLE, N.Y.--(BUSINESS WIRE)--NAPCO Security Systems Inc. (Nasdaq: NSSC - News) today announced the acquisition of Marks USA – a move that further strengthens NAPCO’s comprehensive line of security products. 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, New York and is a leading independent manufacturer of industrial, commercial and institutional locks. Yearly revenue for its fiscal year ended July 31, 2008 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.
Richard Soloway, NAPCO’s President and CEO said, “This acquisition underscores NAPCO’s commitment to its customers and shareholders by offering enhanced growth opportunities through organic means as well as strategic acquisitions. 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.”
Mr. Soloway added, “Combined with NAPCO’s Alarm Lock and Continental Access Control divisions, we now offer our customers one of the widest ranges of door technology products available anywhere in the world. This acquisition now positions NAPCO to have its greatest strength in the industrial and commercial security market, which has been recognized to be the most profitable sector of the security industry. The combined annual revenues of our companies should now be in excess of $90 million generating excellent profits. As the synergies and integration of the combined companies take hold, this should provide a springboard to even further enhancements to our profitability.”
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