Macdermid  chemicals  mergers & acquisitions 
MacDermid, Inc a worldwide manufacturer of proprietary specialty chemical products and materials for the electronics, metal finishing and graphic arts industries announced June 14 that it had the acquired Autotype International Ltd and associated businesses from Norcros (Holdings) Limited of the UK, a portfolio company of Bridgepoint Capital Limited. With locations in Wantage UK, Chicago, Singapore and Denmark, Autotype is a high technology producer of specialty coated film products for the electronics and printing industries.

In printing, Autotype provides high quality stencil materials and digital pre-press products for screen printing.

In electronics, Autotype is the leading producer of hard coated films for the membrane switch and touch screen markets. It has recently introduced films for light management of nomadic devices, unique films for in-mold decoration, and medical applications. It is believed Autotype is the only manufacturer in the world who can replicate nano scale structures through a high volume cost-efficient process on the surface of films.

For the year ended March 31, 2005 Autotype had revenues of $86.5. It employs 390 people in Europe, Asia, and North America, allo of whom joined MacDermid effective June 14.

MacDermid will fund the acquisition with cash on hand: it is understood to have stockpiled about US$138m in cash from successful operations and will pay a further US$9m if Autotype meets certain profit targets this year.

MacDermid’s senior vice president of finance, Greg Bolingbroke, says the US firm has extensive under-utilised capacity in its Middletown, Delaware coating factory and that this will be used by Autotype to support additional growth potential from a US dollar cost base and to defer the need to build new capacity at other locations.
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MacDermid Chairman and CEO, Dan Leever, says, "we have been looking for the right opportunity to invest our retained cash for some time. We have been holding out for an investment that held the potential to improve our underlying growth rate. We believe the Autotype team is unusually innovative, and its products enjoy excellent growth prospects.

"Additionally, MacDermid’s infrastructure in Asia will improve the chances of successful commercialisation of these new and exciting products. Autotype has world class coating technology as evidenced by their unique nano scale replication capability. This is not a story about cost savings and synergies although there will be some. It is about growth."

MacDermid, which employes 2500 people worldwide, says the two companies will operate for the most part independently and according to Bolingbroke, "It’s a growth strategy, This was not a synergy play."

Founded in Waterbury, Connecticut, in 1922 MacDermid last year generated US$660.8 million in sales with earnings of $53.2m, or $1.72 a share. The acquisition of Autotype from Norcros will make MacDermid a $0.75bn player in the global printing, electronics and industrial finishing market.

MacDermid plans to enhance Autotype�s rapid development into new areas in the screen printing and electronics industries. "They believe that with their help we can grow faster and be more successful," says Autotype International managing director, Peter D. Levinsohn. "I am pleased that Autotype has found a stable and successful long term owner who understands the potential for our business and is able to assist directly in accelerating our growth plans."

MacDermid has leading positions in the supply of offset blankets, flexo plates and Colorspan ink jet printers and supplies. It has a strong customer focus backed by technical support summarised by their advertising slogan, ’Yes we can�. Says Levinsohn, "This mirrors our aim to provide technology solutions that help our customers become more successful. Both organisations rely on technology leadership and exceptional customer service to succeed in competitive markets.

"MacDermid�s approach is to encourage their businesses to develop as strong and independent companies, focused on the needs of specific groups of customers around the world. Our existing management team will continue to drive Autotype forward in line with our well-established strategy."