Denver’s MacDermid Inc., a specialty- chemical maker for the electronics, industrial and graphic-arts industries, on Tuesday paid $81.3 million in cash to acquire Autotype International Ltd. from Britain-based Norcros Holdings.
Publicly traded MacDermid will pay another $9 million if Autotype, which makes hard-coated films for electronics and printing products, meets certain profit targets this year.
The acquisition is expected to boost MacDermid’s quarterly earnings by 5 cents a share and enable it to increase capacity at an underutilized U.S. factory in Middletown, Del., said Greg Bolingbroke, MacDermid’s senior vice president of finance.
MacDermid, which employes 2,500 people worldwide but 30 in Denver, said the two companies will operate for the most part independently. Autotype employs 390 people worldwide.
“It’s a growth strategy,” Bolingbroke said. “This was not a synergy play.”
MacDermid, founded in Waterbury, Conn., in 1922, moved to Denver in September. It has manufacturing plants throughout the U.S., Europe and Asia.
Dan Leever, MacDermid chairman and chief executive, said the company had stockpiled about $138 million in cash, setting the stage for the acquisition.
“We have been holding out for an investment that held the potential to improve our underlying growth rate,” Lee ver said in a statement. “We believe the Autotype team is unusually innovative, and its products enjoy excellent growth prospects.”
Last year, MacDermid generated $660.8 million in sales and earned $53.2 million, or $1.72 a share.
Privately held Autotype had revenue of $86.5 million for the fiscal year that ended March 31.
MacDermid’s stock closed Tuesday at $31.12, up $1.30.
Staff writer Will Shanley can be reached at 303-820-1473 or wshanley@denverpost.com.
