NAPCO Security Technologies, a supplier of electronic security equipment for more than 30 years, announced the integration of Marks USA into NAPCO's headquarters in August. NAPCO completed the acquisition of Marks USA on Aug. 18, 2008. Since the acquisition, NAPCO has reduced its net debt by US$7 million, from $36 million to $29 million, due to positive cash flow from operations.
"Upon completion of the integration of Marks, NAPCO's cost savings should be approximately $2 million per year. The complex task of integrating Marks USA into the Amityville location has proceeded smoothly, well within budget and on time. We're very pleased that during this process Marks USA has continued to manufacture its quality door locking products and contributed substantially to both our sales and operating profits," said Richard Soloway, Chairman and CEO of NAPCO.
"As the benefits flow from the more efficient utilization of resources, Marks' product manufacturing rationalization and other cost savings, NAPCO should enjoy a significant improvement in gross margins," added Soloway. "All of these actions should be completed by the end of the current calendar year."