NAPCO Security Systems, Inc. Announces the Acquisition of Marks USA, a Major Industrial and Commercial Locking Manufacturer
- Acquisition Expected to Add Approximately $25 Million to Yearly
Revenues and be Accretive to Per Share Results -
- Company to Conduct Conference Call on Wednesday, August 20, 2008
at 11:00 AM EDT -
AMITYVILLE, N.Y.--(Business Wire)--
NAPCO Security Systems Inc. (Nasdaq: NSSC) 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."
George Marks, President of Marks USA stated, "We are delighted to
be part of NAPCO Security Systems and we believe the combination will
enhance the opportunity for long-term growth. 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," Mr. Marks concluded.
Mr. Soloway stated, "We are delighted to be welcoming George Marks
and Marks USA into the NAPCO family. This will bring an unprecedented
opportunity for increased sales and earnings for our Company and our
shareholders. I look forward to this new era." George Marks will
remain as President of Marks USA, which will operate as a subsidiary
of NAPCO Security Systems, Inc.
A conference call is scheduled for Wednesday, August 20, 2008, at
11:00 AM EDT. Interested parties may participate in the call by
dialing (877) 407-8291; international callers dial (201) 689-8345
about 5-10 minutes prior to 11:00 AM EDT. The conference call will
also be available on replay starting at 1:00 PM EDT on August 20, 2008
and ending on September 10, 2008. For the replay, please dial (877)
660-6853 (replay account # 332, replay conference # 294888). The
access number for the replay for international callers is (201)
612-7415 (replay account # 332, replay conference # 294888).
About NAPCO Security Systems, Inc.
NAPCO Security Systems, Inc. is one of the world's leading
manufacturers of technologically advanced -electronic security
equipment including intrusion and fire alarm systems, access control
systems and electronic locking devices. The Company's products,
including those of Alarm Lock and Continental Instruments, feature
some of the most popular and best-selling control panels, sensors,
locking devices and access control products. They are used in
residential, commercial, institutional, industrial and governmental
applications. NAPCO security products have earned a reputation for
technical excellence, reliability and innovation, poising the Company
for revenue growth in the rapidly expanding electronic security
market, a market whose current size exceeds $30 billion.
For additional information on NAPCO, please visit the Company's
web site at www.napcosecurity.com.
For additional information on Marks USA, please visit the
Company's website at www.marksusa.com.
This press release contains forward-looking statements that
involve numerous risks and uncertainties. Actual results, performance
or achievements could differ materially from those anticipated in such
forward-looking statements as a result of certain factors, including
those set forth in the Company's filings with the Securities and
Exchange Commission.
-0-
*T
* EBITDA has been calculated by adding depreciation and amortization
for the eleven months ended June 30, 2008 ($55,000) and interest
expense for the eleven months ended June 30, 2008 ($40,000) to net
income for the eleven months ended June 30, 2008 ($3,610,000) and
annualizing the sum ($3,705,000) for twelve months.
*T
NAPCO Security Systems, Inc.
631-842-9400 ext. 120
Richard Soloway
CEO
or
Kevin S. Buchel
Senior VP
or
Wolfe Axelrod Weinberger Assoc. LLC
212-370-4500
Donald Weinberger
or
Alisa D. Steinberg (media)
Fax: 212-370-4505
don@wolfeaxelrod.com / alisa@wolfeaxelrod.com
Copyright Business Wire 2008
