NAPCO buys Marks

Fairly big news in the lock world today: NAPCO has agreed to buy Marks USA for $25 million. NAPCO's not huge, doing about $65 million annually right now, but it's being aggressive and has had some fast growth in its recent past. Plus, it's starting to show some nice profitability, with a roughly 20 percent net margin in its most recent report. However, revenues have been relatively stagnant for the past year or so, so it's not surprising the company looked for some non-organic growth. Marks pretty much is what it is: a company that makes locks. I'm not sure how impressed I am with a little under $4 million in net income on $25 in revenue. I would have guessed higher than a 16 percent net margin for a well established private manufacturer, but I don't totally know what I'm talking about there.